ACIT, CHENNAI V. Shri T.M.Abdul Rahman & Sons, CHENNAI

MA 175/CHNY/2011

• Counselvise Citation: [2011] 123 COUNSELVISE.COM (IT) 6832 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 18 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-09-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 04-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K E B RENGARAJAN JR
• Assessee Lawyers: G SITARAMAN
• Keywords: Assessment record; Revenue expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI [BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI HARI OM MARATHA, JUDICIAL MEMBER] M.P.NO.175/MDS/2011 [IN I.T.A NO. 1841/MDS/2009] ASSESSMENT YEAR : 2006-07 THE ACIT BUSINESS CIRCLE XII CHENNAI VS SHRI T.M.ABDUL RAHMAN & SONS 49, WUTHUCATTAN STREET PERIAMET CHENNAI 600 003 [PAN AABFT2029E ] (PETITIONER) (RESPONDENT) PETITIONER BY : SHRI K.E.B RENGARAJAN, JR. STANDING COUNSEL RESPONDENT BY : SHRI G.SITARAMAN, CA DATE OF HEARING : 23-09-2011 DATE OF PRONOUNCEMENT : 23-09-2011 O R D E R PER HARI OM MARATHA, JUDICIAL MEMBER: THIS MISCELLANEOUS PETITION HAS BEEN FILED BY THE REVENUE IN RELATION TO THE TRIBUNAL ORDER DATED 30.4.2010 IN I .T.A.NO. 1841/MDS/2009, IN THE ABOVE CAPTIONED CASE. THE PE TITION READS AS UNDER: THE ASSESSEE HAD CLAIMED ` 34,36,237/ - UNDER EFFLUENT PLANT REPAIR AND MAINTENANCE EXPENSES. THE AO HAD DISALLOWED THE EXPENDITURE CLAIMING IT TO BE CAPITA L IN NATURE. HON'BE ITAT CONSIDERED THAT SINCE THE TANNE RY UNIT SITUATED AT RANIPET HAS JUST COMPLIED WITH THE DIRE CTIONS OF MP 175/11 :- 2 -: TAMIL NADU POLLUTION CONTROL BOARD SO AS TO RUN THE UNIT AND THEREBY CONTRIBUTING ITS SHARE TO RANITEC WOULD AMOUNT TO REVENUE EXPENDITURE ONLY BECAUSE IT IS NECESSARY FOR THE SURVIVAL OF THE BUSINESS OF THE ASSESSEE COMPANY. THE ITAT WERE IN AGREEMENT WITH THE LD. CIT(A) THAT THIS CAN BE TREATED AS AN EXPENDITURE INCURRED ON ACCOUN T OF BUSINESS EXIGENCY. HENCE REVENUE IN NATURE. BUT AS PER THE AGREEMENT THE ASSESSMENT RECORDS THAT THE ASSESSEE GETS A RIGHT TO USE THE EFFLUENT TREATMENT PLANT FOR A P ERIOD OF 5 YEARS. IT IS SUBMITTED THEREFORE THAT THE ENTIRE RE VENUE EXPENDITURE IS NOT ALLOWABLE IN THE A Y 06-07 BUT I T IS ALLOWABLE OVER A PERIOD OF 5 YEARS STARTING FROM TH E ASSESSMENT YEAR 2006-07. SINCE THIS ISSUE IS APPARENT FROM RECORDS IT IS PRA YED THAT THE HON'BLE ITAT MAY BE PLEASED TO PASS NECESSARY O RDER AND DIRECT THAT THE CLAIM OF EXPENDITURE OF ASSESSE E BE SPREAD OVER 5 ASSESSMENT YEARS. 2. WHILE HEARING ON THIS PETITION, IT WAS FOUND THA T THERE IS NO MISTAKE APPARENT FROM RECORD, WHICH CAN BE RECTIFIE D U/S 254(2) OF THE ACT, THEREFORE, THE TRIBUNAL ORDER CANNOT BE RECALL ED. 3. IN THE RESULT, THE MISCELLANEOUS PETITION FILED BY REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 23-09-2011. SD/- SD/- (DR. O.K. NARAYANAN) VICE-PRESIDENT (HARI OM MARATHA) JUDICIAL MEMBER DATED: 23 RD SEPTEMBER, 2011 RD : COPY TO: PETITIONER/RESPONDENT/CIT(A)/CIT/DR