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2017 (1) TMI 314 - AT - Income TaxDeduction u/s.80JJA - whether baggase/husk is not a waste but is a by-product of agriproduce processing industry which was purchased and not collected & processed or treated by the assessee, which is a pre-requisite for claiming deduction u/s.80JJA? - Held that:- As decided in assessee's own case the word "collecting" means to gather; to fetch. It is a neutral word and does not mean collection for consideration or collection without consideration. It is an admitted/undisputed position that the respondent assessee has collected bagasse from sugar factories after having made payment for the same. Therefore, the aforesaid requirement of collecting as provided under Section 80JJA of the Act is satisfied. It is a undisputed finding of fact that the collected bagasse has been used by the respondent assessee to make briquettes for fuel as that indeed is the business of the respondent-assessee. The reliance upon the circular No.772 dated 23/12/1998 by the appellant is misplaced. The aforesaid Circular does not restrict its benefits only to local bodies. In any event the circular cannot override the clear words of Section 80JJA of the Act which provides deduction in respect of profits and gains derived from the business of collecting and processing/treating of biodegradable waste i.e. bagasse into briquettes for fuel. - Decided in favour of assessee Claim of depreciation on windmills - assessee was not a registered owner of the windmills and it was purchasing electricity from Nav Maharashtra Chakan Oil Mills Ltd. (NMCOML), thus having no title/dominion and right to use the asset - Held that:- We find the Ld.CIT(A) following his order for A.Y. 2008-09 & 2009-10 allowed the claim of depreciation. We find the Tribunal in assessee’s own case upheld the order of the CIT(A) for A.Y. 2008-09 and 2009-10 and dismissed the appeal filed by the Revenue wherein held The very concept of depreciation suggest that the tax benefit on account of depreciation legitimately belongs to one who has invested in the capital asset, is utilizing the capital asset and thereby losing gradually investment caused by wear and tear, and would need to replace the same by having lost Its value over a period of time. It is well settled that there cannot be two owners of the property simultaneously and in the same sense of the term. The intention of the legislature in enacting section 32 would be best fulfilled by allowing deduction in respect of depreciation to the person in whom for the time being vests the dominion over the building and who is entitled to use it in his own right ad is using the same for his business or profession. Assigning any different meaning would not sub-serve the legislative intent. In CIT Vs National Cooperative Consumers Federation Ltd. (2000 (9) TMI 15 - DELHI High Court ), the Delhi High Court followed its Full Bench decision in Gowersons Publishers (P) Ltd. Vs CIT (1999 (8) TMI 39 - DELHI High Court ) and held that the assessee was entitled to depreciation allowance in respect of godown-cum-showroom purchased but, not registered in its name.- Decided in favour of assessee Disallowance on account of Employees’ contribution to Provident Fund and ESIC and Labour Welfare Fund - assessee had made contributions in the respective funds after the due date as specified under the provisions of relevant Acts - Held that:- Although the contribution to the above funds were made after due date as specified under the relevant Acts, but before the due date of filing of return of income under the Income Tax Act. This fact has not been disputed by the Department. The Hon'ble Supreme Court of India in the case of Commissioner of Income Tax Vs. Alom Extrusions Ltd. (2009 (11) TMI 27 - SUPREME COURT ) has held that the contributions made after due date as prescribed under the Provident Fund Act but before the due date of filing of return of income, the assessee is eligible to claim deduction thereof. - Decided in favour of assessee Deduction u/s.80IA(4) on windmill - Held that:- We are of the considered view that this issue needs a revisit to the file of Assessing Officer. The Assessing Officer shall re-examine the claim of assessee in respect of deduction u/s. 80IA(4) in the light of decision of Pune Bench of the Tribunal in the case of Serum International Ltd. Vs. Addl. CIT (2013 (1) TMI 688 - ITAT PUNE ).
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