Bangalore ITAT Allows Mine Development Expenditure as Revenue Expense; Deletes Double Addition

Advertisement Southwest Mining Ltd. Vs DCIT (ITAT Bangalore) Bangalore ITAT Allows Mine Development Expenditure as Revenue Expense; Deletes Double Addition The Bangalore ITAT held that mine development and overburden removal expenses incurred by a mining contractor are allowable as revenue expenditure under Section 37(1) and are not governed by Section 35E. The Tribunal noted that Southwest Mining Ltd. was merely a mining contractor engaged by Barmer Lignite Mining Company Ltd. and neither owned the mines nor the lignite extracted. Following its own decision in the assessee’s earlier year...