TaxTMI 
TaxTMI 
2020 (12) TMI 715
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....(A) is opposed to law and facts of the case. 2. Whether on the facts and circumstances of the case, the CIT(A) was justified in law in allowing the claim as revenue expenditure in respect of Dead Rent paid in respect of mines which are not operational and no manufacturing activity is carried on"? (For A.Y. 2009¬10, A.Y. 2010-11 & A.Y. 2011-12) 3. Whether on the facts and circumstances of the case, the CIT(A) was justified in law in allowing the claim of the assessee for payment towards "Environment Protection Fees", as revenue expenditure, though the expenditure resulted in enduring benefit and the same had to be capitalized"?(For A. Y 2010-11) 4. For these and other grounds that may be urged at the time of hearing, it is prayed t....
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....efore the Tribunal. 5. The ld. DR relied on the order of AO. The ld. counsel for the assessee apart from relying on the decision of the CIT (Appeals) also placed reliance on the decision of the Hon'ble Andhra Pradesh High Court in the case of Singareni Collieries Co. Ltd. V. CIT, 66 ITR 553 (AP) wherein it was held that the dead rent payable was revenue expenditure. The ld. counsel for the assessee also relied on the decision of the Hon'ble High Court of Karnataka in the case of CIT v. Lawrence D'Souza [2011] 203 Taxman 200 [Karn] wherein the Hon'ble High Court took the view that rent paid even if the business was stopped cannot be disallowed. 6. We have considered the rival submissions. For the sake of ready reference, we give below the ....
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....advantage. The Supreme Court has also distinguished the case of Gotan Lime Syndicate from the case of Pingle Industries Ltd. vs. CIT (1960) 40 ITR 67 (SC) : TC 16R.935 and Abdul Kayoom vs. CIT 44 ITR 69 (SC) : TC 16R.1006. 2. In the light of the above decision, the instructions issued in the Board's Circular referred to above may now be treated as withdrawn. Under the Mineral Concession Rules, 1960, royalty is payable in respect of any mineral removed by the lessee from the leased area. The amount of royalty cannot be less than the amount of dead rent which is in the nature of minimum royalty. In view of this, the royalty and dead rent paid under the Mineral Concession Rules, 1960, will have to be allowed as revenue deduction for th....
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....assessee by way of disallowance of Environmental Protection Fees. In other words, the AO considered that the assessee would get the benefit of the fee paid for 10 years and allowed 1/10th of the expenditure claimed as deduction by the assessee. 8. On appeal by the assessee, the CIT(Appeals) held that the expenditure in question was revenue expenditure and had to be allowed in full. Aggrieved by the order of CIT(Appeals), the revenue has raised ground No.3 before the Tribunal. 9. The ld. DR submitted that the payment of Environmental Protection Fees is akin to lease deposit and relied on the decision of ITAT Bangalore Bench in the case of ACIT v. K R Kaviraj, ITA No.362 to 366/Bang/2016, order dated 26.12.2017. He also pointed out that the....