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2011 (4) TMI 981 - AT - Income TaxDisallowance in respect of interest on capital work in progress - issue is covered against the revenue by the decision of the Tribunal in assessee’s own case for the assessment years 1992-93 to 1997-98. Respectfully following the same, this ground is dismissed Assessee is aggrieved by the CIT (A)’s action in not allowing claimed by the assessee towards cost of catalyst - during the course of assessment proceedings, the Assessing Officer noticed that the assessee has claimed deduction on the new method which was not allowed by the Assessing Officer in full. The view taken by the AO was upheld by the first appellate authority - on similar issue in assessee’s own case for the assessment years 1987-87 to 1997-98, the matter has been restored back to the file of the Assessing Officer with directions to re-compute the profits in accordance with the old method followed by the assessee - there is no change in the facts in the current year, issue restored to the file of the Assessing officer with the same directions as were given by the Tribunal in the years cited, appeal allowed for statistical purposes Voluntary Retirement Scheme - AO held that expenditure incurred under the Voluntary Retirement Scheme of the assessee company for its employees was of capital nature and was not allowable as it has resulted in a benefit of enduring nature - no infirmity in the order of the Learned CIT (A), issue is covered in favour of the assessee by the judgment of the Hon’ble Supreme Court in the case of Bhor Industries Ltd., ground of the Revenue is also dismissed Write off of loans and advances - AO noticed that assessee has claimed write off of loans and advances but these are not bad debts as the same are not trade debts and since the assessee is not in the business of money lending. These write offs were in the nature of partial write off of housing loan to employee, write off of security deposits insurance claims loans recoverable from ex-employees and miscellaneous recoverables etc - Departmental Representative could not point out a single instance where the advances written off were not made during the course of, and as incidental to, business of the assessee. As long as amounts written off have been in the course of, and as incidental to, assessee’s business activities, the loss so incurred is admissible as business loss, ground dismissed, appeal of the Assessing Officer is thus partly allowed Disallowance of over-riding commission paid to Consultants - Assessing Officer noticed that the assessee had paid to Neeraj Consultants Ltd., towards overriding commission - assessee was unable to produce any evidence to show that Neeraj Consultants Ltd has rendered any service to the assessee - AO disallowed the expenses - issue is covered against the assessee by the decision dated 28th January, 2011 of a co-ordinate Bench of this Tribunal in assessee’s own case for the assessment year 1997-98, disallowance made by the authorities confirmed, appeal dismissed Disallowance of fees paid for restructuring the assessee’s business -CIT (A) has merely followed the decision for the assessment years 1993-94 to 1997-98 - Tribunal has reversed the order of the CIT (A) and accepted the grievance of the assessee for the above years - there is no change in facts in the year under consideration, ground is allowed Disallowance of consultancy and advisory fees for modernization project - CIT (A) has merely followed the decision for the assessment years 1993-94 to 1997-98 - Tribunal has reversed the order of the CIT (A) and accepted the grievance of the assessee for the above years. Since, there is no change in facts in the year under consideration, respectfully following the same, this ground is allowed
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