The assessee claimed amortization of preliminary expenses under section 35D in assessment year 2007-08 which was allowed by the Assessing Officer. However, for AY 2008-09, the Commissioner invoked revisionary powers under Section 263 to disallow the claim on the ground that the assessee had wrongly claimed the deduction under section 35D as it was not an industrial undertaking within the meaning of such expression as envisaged under section 35D. The Hon\u2019ble High Court held that once a claim under Section 35D is granted in the first year, it cannot be disallowed in subsequent years without disturbing the initial year\u2019s assessment. This action by the Commissioner was deemed invalid. The Revenue filed an SLP against the High Court’s decision. The Hon\u2019ble Supreme Court disposed of the SLP as infructuous as the rectification order passed under section 154 of the Act\u00a0 which is against the Revenue for the Assessment year 2008-09 has been made to the relied upon judgement. \u00a0\u00a0(AY. 2008-09)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 35D : Amortization of Preliminary expenses (General)-Claim of was granted by Assessing Officer-Claim could not be disallowed in subsequent year by Commissioner through his revisionary powers without disturbing decision in initial year \u2014No challenge is made against the rectification. order passed by revenue-SLP disposed as infructuous.[S. 154,263, Art. 136] <\/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-50662","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-db8","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50662","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=50662"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50662\/revisions"}],"predecessor-version":[{"id":50663,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50662\/revisions\/50663"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=50662"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=50662"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=50662"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}