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2018 (10) TMI 581 - ITAT RAIPURDeduction u/s 80-IA - set-off of loss of the eligible industrial unit against the profit of other eligible industrial unit - CIT(A) rejected the finding of AO by holding no justification in netting off of the profit and losses of the two eligible units and allowing deduction thereon - Held that:- It has been held in various decisions that while computing the deduction u/s 80-IA, loss of one eligible unit is not to be set off or adjusted against the profit of another eligible unit. Since the order of the ld. CIT(A) is in consonance with the law laid down by various High Courts and various Benches of the Tribunal, therefore, we find no infirmity in the order of the ld. CIT(A). Accordingly, the same is upheld and the ground raised by the Revenue on this issue is dismissed. Deduction claimed u/s 80-IA disallowed by holding that value of power supplied to its own unit for captive consumption at ₹ 4.28 per unit has been overstated - Held that:- Raipur Bench of the Tribunal in the case of DCIT vs. Hira Ferro Alloys Ltd. [2009 (8) TMI 732 - CHHATTISGARH HIGH COURT] for assessment years 2009-10, 2010-11 and 2012-12 has also decided identical issue by upholding the decision of the CIT(A) wherein CIT(A) has deleted the disallowance made by the Assessing Officer u/s 80-IA by holding that the assessee has not overstated the price of power supplied to its divisions. Further, we find the Assessing Officer in subsequent assessment years i.e. for assessment years 2009-10, 2010-11 and 2012-13 has not made any such disallowance u/s 80-IA on account of power tariff charged to other units of the assessee. Under these circumstances, we do not find any infirmity in the order of the ld. CIT(A) on this issue. Taxability of the carbon credits - Assessee filed an application under Rule 27 of the Income Tax (Appellate Tribunal) Rules, 1963 and submitted that the issue relating to the taxability of receipts on account of carbon credit was a highly contentious issue and the law relating to the same has been settled in favour of assessee by the decision of the Hon’ble Andhra Pradesh High Court in the case of CIT vs. My Home Power Ltd. [2014 (6) TMI 82 - ANDHRA PRADESH HIGH COURT] - Held that:- Ground is admitted for adjudication. Since this ground was neither raised before the Assessing Officer nor before the ld. CIT(A) for which there is no adjudication, therefore, considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore this issue to the file of the Assessing Officer with a direction to adjudicate the issue afresh. While doing so, he shall give due opportunity of being heard to the assessee and decide the issue as per fact and law. Disallowance on account of CSR expenses - Held that:- We find identical issue had come up before the Tribunal in assessee’s own case for assessment year 2009-10 and 2010-11 submitted that CSR expenses are incurred for the welfare of local community and thereby improve corporate image of the companies incurring such expenditure. We are of the considered opinion that the CIT(A) has rightly considered the decision and deleted the addition made by the Assessing Officer. Addition on account of charity/pooja and festival expenses - allowable busniss expenditure u/s 37 - Held that:- dentical issue had come up before the Tribunal in assessee’s own case wherein the Tribunal, considering the CBDT Circular No.17(F.No.27(2)-IT/43) dated 06.05.1983 and another CBDT Circular No.13A/20/68-IT(A-II) dated 03.10.1968 wherein it has been held that the expenses incurred on the occasion of Deepawali and Mahurat are in the nature of business expenditure had allowed and granted relief to ₹ 6,54,900/-. Since in the instant case such relief granted by ld. CIT(A) is only ₹ 3,50,000/- towards purchase and distribution of sweets, therefore, following the order of the Tribunal in assessee’s own case for the preceding assessment years 2009-10 and 2010-11 respectively, we do not find any infirmity in the order of the ld. CIT(A). Disallowance u/s 14A - Held that:- Since admittedly the assessee in the instant case has sufficient own capital and free reserves of ₹ 559.12 crores which is much more than the investments of ₹ 212.09 crores, therefore, respectfully following the decisions cited above, we hold that no disallowance of interest is called for. However, since the assessee is holding huge investments, the income of which is exempt from tax, therefore, some disallowance towards administrative expenses is required to be made. Considering the totality of the facts of the case, we are of the considered opinion that 2% of the dividend income received during the year may reasonably be estimated towards administrative expenses for earning such exempt income. The Assessing Officer is directed to compute the same and the order of the ld. CIT(A) is accordingly modified to this extent. Disallowance u/s 43B - delayed payment of employees’ contribution to PF and ESI - employees’ contribution to PF and ESI although deposited after the due date prescribed under the relevant date, however, were deposited before the due date of filing of the return u/s 139(1) - Held that:- The various Benches of the Tribunal are also taking the consistent view that employees’ contribution to PF and ESI cannot be disallowed u/s 2(24)(x) r.w.s. 36(1)(va) if such deposits are made before the due date of filing of the return. Since in the instant case the assessee has deposited the employees’ contribution to PF and ESI before the due date of filing of the return u/s 139(1) of the I.T. Act, 1961, therefore, following the consistent view of the various Benches of the Tribunal on this issue, we hold that the ld. CIT(A) is justified in deleting such disallowance - decided against revenue
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