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2019 (1) TMI 1974 - AT - Income TaxAllowability of depreciation - AO rejected the claim of the assessee on the ground that excavation/raising of coal is not manufacture or production of any article or thing - AO has disallowed 50% of additional depreciation claimed only on the ground that lack of details being filed - disallowance sustained by the ld. CIT(A) at 20% of the claim - HELD THAT:- We are of the considered opinion that the matter should be restored to the file of the Assessing Officer for fresh adjudication, after considering the details of plant and machinery used by the assessee for the purpose of extraction/raising of coal. The assessee claims to have produced audit statements which gave all the required particulars before the Assessing Officer. We direct the assessee to once again produce all the details as required by the Assessing Officer in support of his claim for deduction of additional depreciation. The additional depreciation should be granted on such plant and machinery that have been used for the production of coal. The Assessing Officer should keep in mind that the assessee is a public sector undertaking and its accounts are audited by the Comptroller & Auditor General of India and such audited statements have evidentiary value. Allowability of provision of NCWA-VIII and executives ad hoc payments - CIT-A deleted the addition - HELD THAT:- As the nomenclature used was “provision”, the Assessing Officer was of the view that the liability in question is not crystallized. The assessee produced wage agreement arrived at with the unions in support of the claim that the liability in question is a crystallized liability. The issue in question is covered by the decision of the Nagpur Bench of the Tribunal in the case of Western Coalfield Ltd. [2009 (6) TMI 630 - ITAT NAGPUR] Interim relief @15% of the basic wage affected from 1st July 2008 had been made from the month of April, 2008. The communication of this effect was received from Coal India Ltd. on 16.04.2008. The interim relief to employees is covered under National Coal Wage Agreement. Thus, we find no infirmity in the order of the ld. CIT(A). Excluding from the total income of the assessee, exempt income by way of interest on account of exempt RBI Bonds, which was wrongly included by the assessee in its total income - HELD THAT:- The fresh claim was made for the exclusion before the ld. CIT(A). This was not adjudicated by the ld. CIT(A). The assessee relied on the judgment of Hon’ble Supreme Court in the case of National Thermal Power Co. Ltd. [1996 (12) TMI 7 - SUPREME COURT] and submitted that this issue should have been adjudicated by the ld. CIT(A) in accordance with law as the amount in question is not taxable under the Income Tax Act. On a conspectus of the matter, we admit this additional ground and set aside the issue to the file of the Assessing Officer for fresh adjudication in accordance with law. This fresh claim by way of a ground of appeal is admitted by us by applying the proposition of law laid down by the Hon’ble Supreme Court in the case of National Thermal Power Co. Ltd.(supra). The Assessing Officer is directed to dispose off this issue on merits in accordance with law. Carry forward of unabsorbed allowance for deduction u/s 35E - HELD THAT:- As relying on assessee own case we set aside the matter to the file of the Assessing Officer passing orders in accordance with this order of the Tribunal on this issue. Disallowance paid on account of donation - HELD THAT:- As relying on assessee own case [2017 (7) TMI 1362 - ITAT KOLKATA] expenditure in question was incurred in terms of the National Coal Wage Agreement under sub-title, Education Facility and Workers Education. This is not a donation per se, but an obligation imposed on the assessee in terms of the National Coal Wage Agreement. Nagpur Bench of the Tribunal the case of South Eastern Coalfields Ltd. [2002 (2) TMI 344 - ITAT NAGPUR] noted as a fact that the contributions to the various schools were not incurred voluntarily, but the same was incurred to discharge the obligation, which fell on the assessee in terms of a National Coal Wage Agreement entered into with the employees' unions and such an agreement was enforceable under the law both under the Indian Contract Act as also the industrial Disputes Act. - Decided in favour of assessee. Deduction on account of expenditure on environmental expenses and on account of land reclamation expenses - HELD THAT:- As decided in assessee's own case the appellant’s case is not covered by sec.40A(9). Grants to “Sports & Recreation” - HELD THAT:- As in the assessee’s own case while adjudicating on identical issues for the Assessment Year 2003-04 to 2007-08 have taken a view that the claim in question is allowable expenditure. The ld. DR could not controvert these submissions of the assessee that the orders in question cover this issue in favour of the assessee.
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