2020 (6) TMI 176 - ITAT CUTTACK

Depreciation on lease hold land - HELD THAT:- As decided in own case [2018 (3) TMI 1197 - ITAT CUTTACK] depreciation is not allowable u/s.32(1)(iii) of the Act in respect of intangible assets.

Valuation of closing stock of coal (due to impact of overburden removal expenditure) - HELD THAT:- Valuation of closing stock has been changed due to Uniform Accounting Policy of Coal India Limited. We found that a reference made by the AO on the audited accounts that Reduction in value of stock is due to overall adjustment is as per the Uniform Accounting Policy adopted by the Coal India Limited. Ld A.R. demonstrated before us with a copy of letter of Uniform Accounting Committee recommendation and supported with paper book. Accordingly, we consider it appropriate to restrict our view on the method of valuation of closing stock mine-wise and the valuation of closing stock of coal are interconnected and since we have discussed on the applicability of the provisions, facts and reasons for valuation of stock centre on the first disputed issue. Therefore, we remit this disputed issue to the file of the Assessing Officer for appropriate adjudication afresh and the ground of appeal of the assessee is allowed for statistical purposes.

CMPDIL Expenses - HELD THAT:- We find that the CIT(A) has granted relief with regard to addition made by the AO on account of CMPDIL expenses, which has been approved by the Tribunal by holding as above. In the instant case, the CIT(A) has confirmed addition made by the AO. In our opinion, when the Tribunal has upheld the findings of the CIT(A) thereby deleting the addition made on account of CMPDIL expenses in the assessee’s own case for the immediately previous assessment year as cited above, therefore, respectfully following the decision of the Tribunal, we direct the AO to delete the addition made under the head CMPDIL expenses. This ground of appeal of the assessee is allowed.

Addition made u/s.14A - HELD THAT:- AO was required to work out the average of such investment, the income from which did not form part of the total income instead of total value of investment. For this view, our stand is fortified by the decision of Special Bench in the case of ACIT vs. Vireet Investment (P) Ltd., [2017 (6) TMI 1124 - ITAT DELHI]. None of the parties before us, however, have laid any details to examine as to which of the investments have yielded such income which did not form part of the total income. We, therefore, restore the matter back to the file of the Assessing Officer for calculating the disallowance u/s. 14A read with Rule 8D afresh, in the light of observations made in the body of this order above. Accordingly, ground No.4 is allowed for statistical purposes.

Tax liability towards Interest on Income Tax Refund - HELD THAT:- The argument of the assessee is that since interest paid u/ss.234B, 234C &. 234D is not allowable as a deduction from taxable income, interest received should also not be taxed as income. - This argument is not acceptable.

Short Credit of TDS - HELD THAT:- We restore this issue to the file of AO and after due verification if the AO finds that the assessee is eligible for credit of TDS, it should be given, otherwise, the AO is free to pass order accordingly. This ground is allowed for statistical purposes.

Order being pronounced after ninety (90) days of hearing - COVID-19 pandemic and lockdown - HELD THAT:- Taking note of the extraordinary situation in the light of the COVID-19 pandemic and lockdown, the period of lockdown days need to be excluded. See case of DCIT vs. JSW Limited [2020 (5) TMI 359 - ITAT MUMBAI]