2010 (8) TMI 1026

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....ccount of claim of survey expenses treating it as capital in nature?" [B] "Whether the Appellate Tribunal is right in law and on facts in confirming the order passed by the CIT(A) in deleting the disallowance of Rs. 2,77,044/- made on account of expenditure made for writeback of excess provision of interest income?" 2. The assessment year is 2004-05 and the relevant accounting period is the previous year 01.04.2003 to 31.03.2004. 3. The respondent assessee is dealing in the business of land related to windmill. The Assessing Officer framed assessment under section 143(3) of the Act disallowing an amount of Rs. 21,45,823/- towards claim of survey expenses treating it as capital in nature. According to the Assessing Officer, si....

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.... any expenditure incurred for purchase of such land was a revenue expenditure irrespective of the fact that the land which was found suitable was purchased and that which was not found suitable was not purchased. According to Commissioner (Appeals), the ultimate suitability would not change the character of the expenditure and the same would remain a revenue expenditure. The Tribunal in the impugned order has concurred with the findings recorded by Commissioner (Appeals) and has found that considering the nature of the business carried on by the assessee namely, purchasing of land which is suitable for windmill, the claim of survey expenses prior to the purchase of land was very much essential for the purpose of business and was a revenue e....

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.... the assessee was on account of reversal of excess interest income provided in the earlier year, the same did not pertain to the year under consideration and accordingly disallowed the same. 8. Before Commissioner (Appeals), it was contended on behalf of the assessee that the interest income was provided in the earlier years. In the year under consideration, when the exact interest was quantified, the difference between the excess interest income already shown in the earlier years and the actual interest was written off. The same income had been taxed in the earlier years and the write off had been claimed in the year under consideration. According to the assessee the same income cannot be taxed twice, in the earlier years as well as the....