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2018 (1) TMI 243 - AT - Income TaxDisallowance on contribution to Staff Welfare Fund - CIT-A allowed the claim - Held that:- On identical facts this tribunal has already taken a view in assessee’s own case for A.Y.2003-04 and held that the contribution towards staff welfare fund was based on a resolution of the board of directors of the assessee held on 05.12.1979 and by virtue of that resolution an over riding title on the service charges received and consequently there was a diversion of income by over riding title at source on the service charges received by the assessee. The CIT(A) has followed the order of ITAT on identical facts - Decided against revenue CIT(A) directing the A.O. to verify the claim of the assessee in respect of a carry forward of losses as unabsorbed depreciation, Business loss and Dividend income as exempt income u/s 10(34) - plea of the revenue in ground no.2 that the CIT(A) u/s 251 of the Act does not have the power to set aside an issue to the AO and therefore his order is not in accordance with law - Held that:- The contention raised on behalf of the revenue is correct but nevertheless we are of the view that the issue requires examination by the AI and in the circumstances we direct the AO to verify the claim of the assessee and if found correct give appropriate relief. Thus ground no.2 is treated as allowed.
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