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2019 (12) TMI 1281 - AT - Income TaxNot carrying forward the Long Term Capital Loss - HELD THAT:- A.O. may consult the files of the previous years and if the amount is due and unclaimed, the same may be allowed - We find no infirmity in these directions of the ld. CIT(A). The Assessing Officer is directed to verify the claim of the assessee and allow the same, in accordance with law. Hence, we dismiss this ground of revenue. Addition u/s 14A - absence of any satisfaction note recorded by the ld. A.O. - HELD THAT:- D/R, could not demonstrate that the Assessing Officer has recorded satisfaction, as required under law, prior to invoking Rule 8D of the Income Tax Rules, 1962 (‘Rules’). Thus, this issue is covered in favour of the asses=see by the order of this Bench of the Tribunal in the case of REI Agro Ltd. vs. DCIT [2013 (9) TMI 156 - ITAT KOLKATA] - Decided against revenue. Disallowance made u/s 40(a)(ia) - HELD THAT:- Revenue accepted the claim of the assessee that payment made to parties to the tune of ₹ 30,000/- were not a single transaction and hence, Section 194C of the Act, does not apply. As regards payments to Vyapar Bharati Press, he accepted the submission that TDS @ 1% was deducted on the payments and hence Section 40(a)(ia) of the Act is not applicable. In case of payments to NG Gosai Printing Pvt. Ltd., as it was purchase of goods, he held that the provisions of Section 194C of the Act, does not apply. Regarding the payment to Jivan Ratan Chatterjee Legal, he submitted that the payment of ₹ 31517/-, was towards advocate fees and service tax and as the advocate fees was less than ₹ 30,000/-, Section 194J of the Act, does not apply. Similarly, he has analysed each and every payment and came to a conclusion that provision of tax deduction at source do not apply. D/R, could not contradict these factual findings of the ld. CIT(A). Addition made on account of sale of rights in property and carry forward of loss to future years - HELD THAT:- The assessee has sold the rights in property in the Assessment Year 2013-14 and 2014-15. The assessee declared the same as income from capital gain in its return of income for these Assessment Years. Assessing Officer has accepted this claim of the assessee and assessed the income under the head capital gains. During the current Assessment Year 2015-16, the Assessing Officer treated the income from sale of right in property as income from business. The assessee disputed the same before the ld. CIT(A). Its case is that the income in question is assessable under the head capital gains and not under the head income from business of profession. He relies on the decision of the Hon’ble Supreme Court in the case of Radhasoami Satsang vs. CIT [1991 (11) TMI 2 - SUPREME COURT] for the proposition that consistency should be followed by the Assessing Officer when the facts permeating over the years are the same. - Decided against revenue Allowance of deduction of CSR expenses - HELD THAT:- Revenue does not dispute the finding of the ld. CIT(A) that the expenditure is in question is allowable u/s 80G of the Act. The ld. CIT(A) has not held that the expenditure is allowable u/s 36 /37 of the Act. It is not the case of the ld. CIT(A) that Explanation 2 to Section 37 of the Act, does not come into play. He was of the view that deduction in question is allowable under chapter VIA and not under chapter IV. As this finding has not been challenged, in this ground, we dismiss the same. Allowance of deduction of education cess u/s 37(1) - HELD THAT:- As decided in ITC LTD. VERSUS ACIT, RANGE-8, KOLKAKTA [2019 (4) TMI 1574 - ITAT KOLKATA] section 40a(ii) applies only on taxes such than earn cess(es). We therefore reject the Revenue’s contentions supporting the impugned disallowance. The assessee's instant substantive ground is accepted. The Assessing Officer is direction to verify all the relevant facts and allow the impugned cess (es) as deduction u/ s 37.
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