Laskhmiji Sugar Mills Co. P. Ltd. v. CIT

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.”

…den in open-cast mines is a revenue expenditure. The assessee company is also engaged in open cast mining. He submitted that the Tribunal in it's order has followed the following judgements of Hon’ble Supreme Court: (i) CIT, Bihar & Orissa Vs Kirkend Coal Co. 77 ITR 530 (SC), wherein it has been held as follows: “The finding of the Appellate Tribunal that stowing was an operation carried out in the process of extraction of coal and unless it was carried out, extraction of coal was not possible irrespective of the fact whether depillaring had been done or not, was a finding of fact. In view of that finding, the Hi…