- (1.) Leave granted.
(2.) These appeals are directed against the judgment and order dated 3-8-2007 passed by the High Court of judicature at Rajasthan, Jaipur Bench, Jaipur in IT Appeal No. 270 of 2005 whereby and whereunder the appeal preferred by the appellant herein has been dismissed holding that no substantial question of law arose for its consideration.
(3.) Indisputably, the appellant is a public sector undertaking of the Government of Rajasthan. In the assessment orders in question, which are for the assessment years 1998-99 and 1999-2000 respectively, the assessing officer noticed the status of the appellant and proceeded to assess the returns filed by it, treating the expenditure towards development and prospecting charges amounting to Rs. 14,60,729 and Rs. 16,14,445, as against the expenditure of Rs. 33,58,241 and Rs. 53,84,505 respectively in the preceding year, as capital expenditures. The assessing officer opined: The submissions of the assessee have been considered. However, from the past records of the assessee it is seen that this expenditure is held to be purely as capital expenditure and disallowed. Therefore, in view of the past history of the case, the expenditure towards development and prospecting charges amounting to Rs. 14,60,729 is treated as of capital nature and disallowed.;