{"id":49206,"date":"2024-12-28T10:42:28","date_gmt":"2024-12-28T05:12:28","guid":{"rendered":"https:\/\/itatonline.org\/digest\/raymond-ltd-v-cit-2024-300-taxman-323-bom-hc\/"},"modified":"2024-12-28T10:42:28","modified_gmt":"2024-12-28T05:12:28","slug":"raymond-ltd-v-cit-2024-300-taxman-323-bom-hc","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/raymond-ltd-v-cit-2024-300-taxman-323-bom-hc\/","title":{"rendered":"Raymond Ltd. v. CIT (2024) 300 Taxman 323 (Bom.)(HC)"},"content":{"rendered":"<p>Assessee increased cement manufacturing capacity at its Bilaspur plant, involving purchase and erection of plant and machinery in previous year relevant to Assessment Year 1984-85.\u00a0 It filed income-tax returns claiming deductions for pre-operative expenses (power, fuel, and lease rent for machinery) for Assessment Year 1986-87.\u00a0 Assessing Officer disallowed pre-operative expenses. Commissioner (Appeals) partly allowed appeal, accepting assessee\u2019s contention that pre-operative expenses for expansion should be allowed as revenue expenditure. On\u00a0 appeal, Tribunal reversed order, treating expenses as capital expenditure. On appeal the Court held that\u00a0 from records that in earlier years (AY 1984-85 and Assessment Year 1985-86), Tribunal had treated similar expenses as revenue expenditure and High Court upheld that treatment.\u00a0 Further, for subsequent years (AY 1990-91, Assessment Year 1994-95, and Assessment Year 1997-98), High Court consistently maintained that position. Accordingly the Tribunal was not justified in reaching a conclusion contrary to view expressed by it in its order for assessment years 1984-85 and 1985-86 without there being any change in factual or legal situation and without giving any reasons for taking a different view<strong>.<\/strong>Followed \u00a0CIT\u00a0v.\u00a0Raymond Ltd.\u00a0[2012] 23 taxmann.com 427\/208\u00a0Taxman\u00a0454 (Bom)(HC), CIT\u00a0v.\u00a0Raymond Ltd.\u00a0[2012] 21 taxmann.com 60\/209\u00a0Taxman\u00a065 (Bom)(HC),\u00a0\u00a0 Dy. CIT\u00a0v.\u00a0Raymond Woollen Mills Ltd.\u00a0[IT Appeal No. 4088 (Bom.) of 1991],<\/p>\n<p>(AY. 1986-87)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 37(1) : Business expenditure-Capital or revenue-Pre operative expenditure-purchase and erection of plant and machinery-Allowable as revenue expenditure-Allowed earlier years and latter years-Rule of consistency is followed. [S. 145, 260A] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-49206","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cNE","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49206","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=49206"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49206\/revisions"}],"predecessor-version":[{"id":49207,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/49206\/revisions\/49207"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=49206"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=49206"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=49206"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}