Case Law Details
DCIT Vs L & T Access Distribution Services Ltd. (ITAT Mumbai)
On the one hand, it is argued by the Ld. A.R. for the assessee before the Ld. CIT(A) that the expenditure of Rs.13.30 crores is for the purpose of setting up of the business of the assessee, but at the same time argued that the expenditure qualifies for amortization under section 35D of the Act, to which the Ld. CIT(A) has agreed and allowed the amount of Rs.13.30 crores to be amortized under section 35D of the Act. How the expenditures are to be amortized when assessee has come up with a specific plea before the AO that the deductions claimed are allowable under section 37 of the Act. The Ld. CIT(A) has not decided the issue in entirety as to how the expenditures are not allowable under section 37 of the Act and where is the detail on the basis of which expenditures are held to be allowable for amortization under section 35D of the Act.
In these circumstances, we are of the considered view that the issue is required to be remitted back to the AO to decide afresh keeping in view both the pleas raised by the assessee one before the AO and another before the Ld. CIT(A) as to allowability of expenditure under section 37 of the Act or allowability of amortization of the expenses under section 35D of the Act.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The appellant, M/s. L & T Access Distribution Services Ltd. (hereinafter referred to as ‘the assessee’) by filing the present appeal, sought to set aside the impugned order dated 14.11.2017 passed by Commissioner of Income Tax (Appeals)-8, Chennai [hereinafter referred to as the CIT(A)] qua the assessment year 2013-14 on the grounds inter alia that :-
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