THE ACIT, CIRCLE MORBI, MORBI vs. M/S. VITA GRANITO PVT. LTD., MORBI

ITA 126/RJT/2019Status: DisposedITAT Rajkot07 July 2023AY 2008-09Bench: SMT.ANNAPURNA GUPTA (Accountant Member), SHRI T.R. SENTHIL KUMAR (Judicial Member)8 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the gas connection charges were revenue in nature. The expenditure was incurred solely to facilitate the supply of gas, which was used as fuel, and did not result in the creation of any asset or enduring benefit for the assessee.

What were the facts?

The Revenue appealed against the CIT(A)'s order allowing the assessee's claim for gas connection charges. The Assessing Officer had disallowed this claim, treating it as capital expenditure due to perceived enduring benefits.

What were the issues?

Whether gas connection charges paid to a gas company for facilitating gas supply, where ownership of pipelines remains with the gas company, constitute capital or revenue expenditure.

Which sections of the Income-tax Act were involved?

Section 37(1)

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Income Tax Appellate Tribunal, RAJKOT BENCH, RAJKOT

Before: SMT.ANNAPURNA GUPTA & SHRI T.R. SENTHIL KUMAR

For Appellant: Shri Mehul Ranpura, ld.AR
Hearing: 04/07/2023Pronounced: 07/07/2023

PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER Present appeal has been filed by the Revenue against order passed by the ld.Commissioner of Income Tax(Appeals)-3, Rajkot [hereinafter referred to as “Ld.CIT(A)under section 250(6) of the Income Tax Act, 1961 ("the Act" for short) dated 14.3.2019 pertaining to the Asst.Year 2008-09. 2. This is a recalled matter. The appeal of the Revenue was earlier dismissed on account of low tax effect. However, subsequently, the Department filed an MA pleading that the appeal of t

The order continues below.

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