RELIANCE HOME STORE LTD,NAVI MUMBAI vs. ASST CIT CIR 10(3), MUMBAI

This appeal by the assessee is preferred against the order of the Ld. CIT(A)-6, Mumbai dated 1.10.2012 pertaining to Assessment year 2008-09.

The sole grievance of the assessee relates to the disallowance of claim for deduction u/s. 37(1) in respect of revenue expenditure incurred during the year amounting to Rs. 4,08,41,533/-.

At the very outset, the Ld. Counsel for the assessee drew our attention to the decision of the Tribunal in the case of M/s. Reliance Footprint Ltd in DATED 23.10.2012. It is the say of the Ld. Counsel that the facts in issue in the impugned appeal are identical to the facts considered by the Tribunal in ITA No. 5997/M/2011 (supra). The appeal has been decided by the Tribunal in favour of the assessee and against the Revenue. The Ld. Counsel prayed that on identical set of facts similar view should be taken.

Per contra, the Ld. Departmental Representative strongly supported the findings of the AO.

We have given a thoughtful consideration to the submissions made by the respective representatives and have carefully perused the orders of the authorities below. We find force in the contention of the Ld. Counsel. The Tribunal in has considered identical facts and at para-2.3 of its order, the Tribunal has given the reasoning of the AO for making the impugned disallowance. We find that verbatim reasoning have been given by the AO while making the disallowance in the case under consideration. Not only this, the reasoning given by the First Appellate Authority in the case of M/s. Reliance Footprint Ltd (supra) are verbatim the reasoning given by the First Appellate Authority in the present case.

In the result, the appeal filed by the assessee is allowed.