2014 (2) TMI 1268

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....ears 2005-06, 2006-07 and 2008-09, respectively. In assessment year 2005-06, the proceedings are u/s 143(3) of the Income-tax Act, 1961 (in short the 'Act') whereas in assessment years 2006-07 and 2008-09, the proceedings are u/s 143(3) r.w.s 92CA of the Act. I.T.A.No. 2080/Mds/2013 2. A perusal of the grounds raised by the appellant/Revenue makes it clear that it is aggrieved by the action of the CIT(A) in deleting disallowances/additions of Rs. 4,77,892/- regarding repair and maintenance of building, Rs. 97,04,250/- relating to development charges of raw material storage yard and Rs. 48,95,792/- pertaining to filling, levelling and development of safety area-III made by the Assessing Officer in assessment order dated 22.12.2008. It ....

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....lling, levelling and developing of safety area-III expenditure, he observed that this amounted to addition to capital asset which was not 'revenue' in nature. Therefore, the Assessing Officer disallowed/added the aforesaid amounts in assessee's income. 5. In lower appellate proceedings, the CIT(A) has followed the order of the 'tribunal' for assessment year 2004-05 to delete the aforesaid additions. This leaves the Revenue aggrieved. 6. We have heard both parties and gone through the case file. The only contention advanced by the Revenue is that since the expenses are 'capital' in nature, the CIT(A) ought not have deleted the same by following the order of the 'tribunal' (supra) dated 10.7.2009. Per Revenue, its appeal is pending b....

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....eeding on this reasoning, he invoked section 80IA(5) by following the special bench decision of the Ahmedabad tribunal in ACIT vs Goldmine Shares & Finance (P) Ltd. [2008] 113 ITD 209 and made the disallowance. 10. In lower appellate proceedings, the CIT(A) has followed the decision of hon'ble jurisdictional high court in the case of Velayudhaswamy Spinning Mills (P) Ltd. vs ACIT 340 ITR 477 in observing that losses of earlier year prior to initial assessment year (first year of claim) which had already been set off cannot be set off once again against the profits of eligible business in determining the quantum of deduction u/s 80IA(4) of the Act. In this manner, the disallowance/addition stands deleted. 11. Before us, the only co....