Cit v. Bhushan Kumar

S . $44, 46, 48, 51 and 54* IN THE HIGH COURT OF DELHI AT NEW DELHI ITA 1084/2010•ITA 1090/2010 COMMISSIONER OF INCOME TAXAppellantversusCHANDER BHANRespondent CHANDER BHAN•ITA 1094/2010•ITA 1099/2010 AppellantRespondentAppellant COMMISSIONER OF INCOME TAXversus KRISHAN KUMAR +ITA 368/2011 CIT versus BHUSHAN KUMAR Respondent Presence: Mr. Rohit Madan, Adv. for revenue Mr. Satyen Sethi and Mr. Arta Trana Panda, Advs. for assessee CORAM:HON'BLE MR. JUSTICE S. RAVINDRA BHATHON'BLE MR. JUSTICE R.K.GAUBAORDER %15.04.2015 1.The revenue challenges the orders of the ITAT which set aside theassessment order disallowing the losses claimed by assessee's Namoli unit.The sales of the said unit - in respect of which a claim for deduction underSection 8011H and 801 had been made previously, were treated as income rA ^ 7 from other sources. At the outset it is not disputed that the question as toadmissibility of deduction under Section 80HH and 801 in the Namoli unit isnow covered by the decision in ITA Nos.220/2007 and 232/2007 decided on5.3.2015. In the circumstances, the AO's view that the losses could not betreated as genuine cannot be sustained. However, we also notice that thegenuineness and admissibility of expenses claimed or the expenditure ofsuch claims was not examined since the sales were entirely treated asincome from other sources. In these circumstances, the matter is remittedfor examining the admissibility of the expenditure in the light of the findingthat the Namoli unit was entitled to deduction under Section 80HH and 801. S 2.The other question which is urged in all these appeals is as to theadmissibility of expenditure claimed for acquiring a master plate as rawmaterial for video tapes. The revenue's insistence on treating thisexpenditure as capital expenditure was set aside by the ITAT. This issuestands covered by the decision by this Court in Commissioner of Income [Tax]V.Krishan Kumar [(2015) 53 Taxman 273 (Del.). This question is therefore]answered in favour of the assessee. In the light of the finding with respect tofirst issue i.e. the expenditure claimed, which has been remitted to the AO,the revenue's appeals are disposed of L144U.,S. RAVI DRA BHAT, J9R.K. ^t,J APRIL 15, 2015/E4