TaxTMI 
TaxTMI 
2016 (7) TMI 741
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....A No. 6331/Mum/2013 for the assessment years 2009-10 & 2010-11 respectively, the assessee has sought rectification of mistake apparent from records u/s 254(2) of the Income Tax Act,1961(Hereinafter called "the Act" ) in the common order dated 30th October, 2015 passed by the Income Tax Appellate Tribunal , "C" Bench , Mumbai (Hereinafter called "the Tribunal") for the both the years. 2. In these two miscellaneous applications, the assessee submitted that in ground No. 1 of the appeal filed with the Tribunal , the assessee's claimed expenses incurred for realization of non-performing assets (NPA) as revenue expenditure in the return of income filed as against the books of account where such expenses are added to/carried as 'current assets....
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....terference from our side because such expenses should be related as work-in-progress with each NPA and transferred to profit and loss account only when the NPA is finally settled Accordingly the appeal filed by the assessee is dismissed. " The assessee contended that during the time of hearing on 14-10-2015 the ld. Counsel for the assessee relied on the decision of Hon'ble Supreme Court in the case of Taparia Tools Limited v. ACIT (2015) (Civil Appeal code No. 6946-6948 of 2004) whereby the Hon'ble Supreme Court held that the revenue expenditure is to be allowed in the year in which it is incurred. In a case where the assessee himself wants to spread the expenditure over a period of ensuing years ,it can be allowed only if the principle ....
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....sion in DSP Investment Private Limited v. Addl. CIT in ITA no 2342 of 2013,Hon'ble Punjab and Haryana High Court decision in the case of R.M.Exports v. CIT in (2014) 48 taxmann.com 58(P&H HC),Hon'ble Supreme Court in the case of ACIT v. Saurashtra Kutch Stock Exchange Limited in (2008) 173 Taxman 322(SC). The learned DR on the other hand submitted that there is no mistake in the order of the Tribunal which is well reasoned order and a plausible view has been taken by the Tribunal which cannot be rectified u/s 254(2) of the Act otherwise it would lead to review of the order dated 30-10- 2015 of the Tribunal. 3. We have heard the rival contentions and perused the order of the Tribunal dated 30th October, 2015 and other materials available ....
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....see's case. The relevant finding of the Tribunal order dated 30th October, 2015 is reproduced below:- A2. ITA No. 3123/Mum/2013: The assessee is engaged in the business of acquiring Non Performing Assets (herein after called 'NPA') from banks and financial institutions and then recover or realize the money from such loan accounts or from the assets acquired with NPA as security. The amount paid for acquiring NPA is capitalized in the books of account and any expenditure subsequent to it, relating to any particular NPA, is also capitalized with it and the same is carried forward as current asset, whereas, normal business expenses of maintaining office, etc. are charged to the Profit & Loss Account. But in the return of income assessee has....
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....nks or financial institutions. These NPAs are loan amounts of various types of parties where loss is outstanding against the party and such party has also given certain assets as security to the bank/ financial institutions. The charge of such securities also comes to the assessee with NPAs. Either the NPA loan is recovered from the party and automatically the charge of the assts by which the loan was secured comes to an end. But generally such loans are bad accounts therefore assessee has to realize the money by disposing of the assets secured against such loan. Any profit or loss at the end of the entire process of recovery and disposing of the assets is charged/credited to the Profit & Loss Account. This is a long drawn process and may i....
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....tled. Accordingly the appeal filed by the assessee is dismissed." We have observed that although the decision of the Hon'ble Supreme Court in the case of Taparia Tools Limited (supra) has not been specifically mentioned by the Tribunal, the ratio of the said decision has been implicitly duly taken care of keeping in view of the peculiar facts and circumstances and factual matrix surrounding the assessee's business as set out in the afore-stated Tribunal's order. We have further observed that the decision of Hon'ble Supreme Court in Taparia Tools Limited (supra) was given in context of allowability of interest on debentures under provisions of Section 36(1)(iii) of the Act while the assessee's case is with respect to acquisition of NPA's ....