Northern Coalfields Ltd. v. ACIT, Circle 2(1), Jabalpur

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.”

…sions to allow deduction in respect of Capital `ITA No.457/Bang/2023 & CO No.4/Bang/2023 M/s. South West Mining Limited, Bellary Page 12 of 42 Expenditure which is otherwise not deductible. The Hon'ble Jabalpur ITAT in Northern Coal Fields vs ACIT (2015) in 59 Taxmann.com 394 held that as long as the expenditure was admissible as deduction u/s. 37 of Act, there could not be any occasion to invoke Section 35E of the Act so as to force the amortization of such expenditure over a period of 10 years rather than allow it as deduction in the year of incurring the expenditure. As per CBDT Circular No. 56 dated 19.03.1…