103 ITR 66 (SC)/CIT v. Amalgamated Jam

Income-Tax Officer, Ward-1, Bellary vs. M/S. South West Mining Limited, Bellary

In the result, appeal of the revenue is dismissed and CO filed by the assessee is dismissed

Bench: Shri Chandra Poojari & Smt. Madhumita Royassessment Year: 2011-12 Ito M/S. South West Mining Limited Aayakar Bhavan Staff Road Vidya Nagar Fort Bellary Near Talur Cross Karnataka Toranagallu Vs. Bellary 583 201 Karnataka Pan No : Aafcs9792M Appellant Respondent C.O. No.4/Bang/2023 (Arising Out Of Ita No.457/Bang/2023) Assessment Year: 2011-12 M/S. South West Mining Limited Ito Vs. Bellary 583 201 Ward-1 Karnataka Bellary Appellant Respondent Assessee By : Shri Rakesh Joshi, A.R. Revenue By : Ms. Neera Malhotra, D.R. Date Of Hearing : 20.12.2023 Date Of Pronouncement : 08.02.2024 O R D E R Per Chandra Poojari: This Appeal By Revenue & Co By Assessee Are Directed Against The Order Of Nfac For The Assessment Year 2011-12 Dated 21.4.2023 Passed U/S 250 Of The Income Tax Act, 1961 (In Short “The Act”). The Revenue In This Appeal Raised Following Ground: “Whether The Ld. Cit(A) Is Justified On The Facts Of The Case & In Law, In Deleting The Addition Of Rs.287.72 Crores Claimed Towards “Mine Development Expenditure” U/S 37(1) In The Computation Of Income Which Was Not Routed Through The Profit & Loss Account.”

…t of enduring benefit to Assessee therefore, these expenses cannot be termed as Capital in nature. These expenses are purely Revenue in nature. 5.2 He observed that the Hon'ble Calcutta High Court in the case of CIT vs Amalgamated Jambad Syndicate (P) Ltd in 117 ITR 698 (Cai) held that expenses incurred in removal of overburden in the course of mining is a Revenue Expenditure. Similarly, the Hon'ble High Court in the case of CIT vs Katras Jharia Coal Co Ltd. (1979) in 118 ITR 6 has clearly held that expenses incurred in removal of overburden in the course of mining is a Revenue expenditure. In both these judgmen…