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2018 (4) TMI 313 - AT - Income TaxReopening of assessment - validity of reasons to believe - Held that:- We find that notice u/s 148 of the Act was issued before the expiry of 4 years from the end of relevant A.Y. and the reason for reopening related was the issue of additional royalty privilege fees and there was no finding of the Ld. AO on this issue in the regular assessment completed u/s 143(3) of the Act. We, therefore, find no merit in the grounds raised by the assessee in view of the facts and circumstances of the case wall as in view of Hon'ble Apex Court judgment in the case Kalyanji Mobji & Co. vs. CIT (1975 (12) TMI 2 - SUPREME Court) wherein observed that “reassessment can be initiated even when the information is obtained from the record of the original assessment, investigation of the material of the record or facts disclosed thereby from an inquiry or research into facts or law. The information need not be from external source." - Decided against assessee. Disallowance of ex-gratia payment provided for labourers - Held that:- Respectfully following the judgment of Hon'ble Apex court in the case of SA Builders Ltd. (2006 (12) TMI 82 - SUPREME COURT) and in view of the facts and circumstances of the case, discussed in the preceding para are of the considered view that the alleged expenditure of exgratia payment in the shape of Anugrah Rashi/Protsahan Rashi to labourers working in the mines held on lease by the assessee are allowable as business expenditure and both the lower authorities erred in disallowing the same. In the result the issue of disallowance ex-gratia payment is allowed in favour of the assessee Disallowance of privilege fee - provision in in the nature of additional royalty i.e. tax payable to the state government for mining or it is a privilege fee - Held that:- From the perusal of records, we find that the alleged provision was made as per government order No.F19-95/2004/12/2 dated 13.10.2004 issued by the State Government by the Ministry of Mines and Minerals. The copy of alleged order is not placed on record. Even though the assessee has paid the amount equivalent to the royalty paid on the sand and has also deposited ₹ 15 crores through challans in the government treasury, but still its actual nature is not discernable from the records placed before us. The fact needs to be inquired by the AO duly assisted by the assessee as well as information to be taken from the Madhya Pradesh State Government( Mines and Minerals Department) duly, referring to the notification as discussed above and then to decide accordingly. In case the alleged amount is in the nature of tax duty or cess (by whatever name called under any law for the time being enforce) then the alleged disallowance needs to be sustained and if found otherwise then the claim of assessee should be allowed. - Allow this issue in favour of assessee for statistical purposes and remit it to the file of Ld. AO to make necessary verification
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