TaxTMI 
TaxTMI 
2022 (1) TMI 676
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....w that assessee after filing the appeal should be vigilant enough to prosecute the same. But, we find that the assessee is not serious in pursuing the appeal filed by it. In the absence of any co-operation from the side of the assessee, we don't find any reason to keep the matter pending before us. Accordingly, we decide to proceed to adjudicate the appeal after hearing the learner DR appearing on behalf of the Revenue. 3. The assessee has raised the following grounds of appeal: Your appellant being dissatisfied with the order passed by the Commissioner of Income tax (Appeals) presents this appeal against the same on the following amongst other grounds. 1.0 The order passed by the assessing officer is bad in law since it is contrary to the provisions of law and the facts of your appellant's case. It is submitted that it be so held now. 2.0 The CIT(A) erred in upholding disallowance of Rs. 23,18,866/- made by the AO by invoking provisions of proviso to section36(1) (iii)). The appellant submits the disallowance of Rs. 23,18,866/- is erroneous under the law and the facts. He appellant submits that disallowance of Rs. 23,18,866/- be quashed. ....
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....om GIDC. The part payment for the land was required to be made in 12 quarterly instalments under the allotment letter. Thus interest has been paid on the outstanding purchase consideration and not on the amount borrowed for the acquisition of the land. There was no relationship between the assessee and the GIDC of borrower and lender. 5.4 The assessee without prejudice to the above also contended that there was no extension of the existing business as required under the provisions of section 36(1)(iii) of the Act. As per the assessee it was already engaged in the business activity of whitening agents at Ahmedabad. Accordingly the proviso to section 36(1)(iii) of the Act is not applicable. 5.5 The assessee further submitted that the expenditure in the form of interest was incurred by it in the ordinary course of business only and exclusively for the purpose of the business. Therefore the same should be treated as revenue in nature and the same should be allowed either under the provisions of section 28 or 37 of the Act. 5.6 However, the learned CIT (A) disregarded the contention of the assessee by observing that it is discernible from the allotment letter issued by GIDC tha....
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....of section 43(1) of the Act directly deals such situation which reads as under: In sections 28 to 41 and in this section, unless the context otherwise requires- "actual cost" means the actual cost of the assets to the assessee, reduced by that portion of the cost thereof, if any, as has been met directly or indirectly by any other person or authority: ************ Explanation 8.-For the removal of doubts, it is hereby declared that where any amount is paid or is payable as interest in connection with the acquisition of an asset, so much of such amount as is relatable to any period after such asset is first put to use shall not be included, and shall be deemed never to have been included, in the actual cost of such asset. 8.2 A perusal of the above provisions reveals that the entire interest cost has to be capitalized if it was incurred in connection with the capital asset. Thus, without going into the provisions whether it relates to the expansion/extension of the business, interest cost cannot be allowed as revenue expenses in the given facts and circumstances. Accordingly, we do not find any infirmity in the order of the authorities below. T....
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....Rs. 20,30,909/- . Inclusion of Rs. 20,30,909/- being unutilized modvat credit in computation of the total income was mistake apparent from records. Rs. 20,30,909/- is not income in view of decision of the Hon'ble Supreme Court in the case of CIT vs. Indo Nippon Chemicals Co. Ltd. reported at 261 ITR 275 and also in view of decision of the Hon'ble Gujarat High Court in the case of Nirma Ind. Ltd. v/s Dy. CIT 283 ITR 429 and CIT vs Unique Industries reported at 307 ITR 350. 4. The appellant without prejudice to above further submits that addition of Rs. 20,30,909/- in any event is excessive and the same is required to be substantially reduced. The AO ought to have increased deduction u/s.80HHC admissible to the appellant. The appellant submits that appropriate relief be allowed. Your appellant prays for leave to add, alter, amend and/or withdraw all or any of the grounds of appeal before the final hearing of the appeal. 10. At the outset we note that there was a delay in filing the appeal by the assessee for 22 days only. Considering the length of delay, the ld. DR raised no objection if the delay is condoned. Hence, we condone the delay and proceed to adjudicate....
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....ssee by observing that the issue of MODVAT credit has been decided right up to the tribunal against the assessee and therefore there remains no mistake apparent from record. 12.4 The assessee against the order of the AO preferred an appeal before the learned CIT (A) who has also dismissed the appeal of the assessee by observing as under: If is clear from the above sequence of events that the appeal is without any basis. The AO has rightly rejected the application under section 154 as there was no error which was apparent from records in his order. The additions which were made by the AO in the assessment order were duly reasoned out. The AO had given correct facts of the issue and thereafter the addition was made. The CIT(A) also discussed the issue in detail and confirmed the order. The appellant has not pointed out as to what was the mistake in the assessment order or in the order of CIT(A) which should be now connected. It has been pointed out by him ground No. 2.0 that the appellant had already included Rs. 2030909/- in the computation of total income and therefore, the addition has resulted in taxing twice the amount. However the claim of the appellant is without a....