M/S BHARATIYA NABHIKIYA VIDYUT NIGAM LTD, CHENNAI V. DCIT CORPORATE CIRCLE 1 (2), CHENNAI

MA 126/CHNY/2020

AI Insights

The case involves M/s. Bharatiya Nabikiya Vidyut Nigam Ltd., which filed a Miscellaneous Petition seeking recall of a Tribunal order that disallowed certain expenditures on the grounds of non-commencement of business. The appellant argued that the business was set up in October 2003 and was engaged in constructing a fast breeder reactor, which constituted business activities eligible for claiming deductions. The respondent opposed the recall, arguing that the review of the order was not permissible. The Tribunal, after reviewing the facts and previous findings, dismissed the application, affirming that the business was not commenced as per the requirements for allowing the claimed expenditures.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133951 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 20 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 16-02-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 16-02-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 27-01-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

आयकर अपीलीय अिधकरण ‘बी’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय +ी महावीर िसंह, उपा12 एवं माननीय +ी मनोज कु मार अ7वाल ,लेखा सद: के सम2। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM MA No.126/Chny/2020 (Arising out of ITA No.1304/Chny/2018) ( िनधाCरणवषC / Assessment Year: 2013-14) M/s. Bharatiya Nabikiya Vidyut Nigam Ltd. C/o. M/s. Ramesh & Ramachandran (CA) New No.39, Old No.29/3, Viswanathapuram Main Road, Kodambakkam, Chennai-600 024. बनाम/ V s. DCIT Corporate Circle-1(2), Chennai. थायीलेखासं./जीआइआरसं./P AN /GI R No. AAC C B -3 4 6 0 -C (अ पीलाथ /Appellant) : ( थ / Respondent) अपीलाथ कीओरसे/ Appellant by : Shri Y. Sridhar (FCA) – Ld. AR थ कीओरसे/Respondent by : Shri AR.V. Sreenivasan (Addl. CIT)-Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 17-02-2023 घोषणाकीतारीख /Date of Pronouncement : 17-02-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. By way of this Miscellaneous Petition, the assessee seeks recall of Tribunal order passed in captioned appeal on 11-10-2019. Drawing attention to the petition, Ld. AR submitted that the expenditure was disallowed by Ld. AO due to non-commencement of the business. The Ld. AR submitted that the assessee was set up in October, 2003 and the process of construction of the fast breeder reactor was in progress. This MA No.126/Chny/2020 - 2 - activity was part of assessee’s business i.e., to construct a fast breeder reactor and it was not engaged in generation of electricity alone. The various decisions have held that once the business is set-up though the same has not commenced, the assessee is eligible to claim the deduction of expenditure. The Ld. AR pleaded that in such a case, the expenditure ought to have been allowed to the assessee. The Ld. Sr. DR, on the other hand, opposed any interference in the order on the ground that the review of the order is impermissible. 2. Upon perusal of para-7 of the order, we find that the bench, after appreciating the factual matrix, has rendered a finding that the work was still in progress and the facts would show that the plant was not setup / ready for commencement of business operations. Accordingly, the claim of expenditure as well as claim of preliminary expenses u/s 35D was held to be not allowable. We find that the bench has rendered clear finding on the issue after considering the factual matrix and rendered adjudication on the impugned issues. If the plea of Ld. AR is accepted, the same would be mere review of the order which is impermissible. No case of mistake apparent from records could be made out before us. 3. In the result, the application stand dismissed. Order pronounced on 17 th February, 2023. Sd/- Sd/- (MAHAVIR SINGH) उपा12 /VICE PRESIDENT (MANOJ KUMAR AGGARWAL) लेखा सद: / ACCOUNTANT MEMBER चे+ई Chennai; िदनांक Dated : 17-02-2023 EDN EDNEDN EDN आदेशकीVितिलिपअ7ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आयु /CIT 4. िवभागीय ितिनिध/DR 5. गाड फाईल/GF