1983 (1) TMI 52

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....1) of the I.T. Act, 1961 ("the Act "), the following question has been referred to this court: " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in allowing the expenses of Rs. 23,206 during this year though the assessee incurred the same in the earlier year ? " The fact that expenses incurred in removing overburden in the course of mining can be allowe....

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....r and as such it was not justified to write off the expenses in this year. Therefore, he disallowed the amount. The assessee preferred an appeal before the AAC. It was contended that the expenses were incurred to find out mica veins and as such these expenses were business expenses. The AAC held that these expenses were development expenses. He also held that these expenses were for prospecting....

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....rburden for extracting ore and so the expenditure was incurred in the process of mining operations and was revenue expenditure. The Tribunal further held that there was continuous operation and the assessee had written off the amount during the year and, therefore, the Tribunal allowed the expenses. On behalf of the Revenue, our attention was drawn to several decisions including the decision of....

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....is point the court would be disinclined to entertain such an academic question. But it is necessary in order to arrive at the conclusion, whether it is academic or not, what was the last year's profit and what was the profit in this year. If the last year's profit would have been negligible and if it would have been carried forward, what would have been the actual position in this year. The Tribun....