TMI Blog2012 (6) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... A.O was of the opinion that the same was not allowable. The assessee contended that the company is labour intensive and manufacturing writing instruments. The assessee’s unit is based in Gujarat and to carry on the business smoothly by maintaining harmonious relations has given donations on various occasions to encourage the workers as well as the local people on the occasion like Navaratri etc., The assessee contended that the same expenditure is allowable u/s. 37(1) – Held that:- expenditure was incurred for maintaining the healthy relations with the worker and peoples in the locality but at the same time, nothing is disputed that the said were the donations. no interference is called for and we accordingly confirm the disallowance Bad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion that the Employees Contribution to PF/ESIC even if made before filing of the return of income is not covered u/s. 43B of the I.T. Act – Held that:- In the case of Alom Extrusion Ltd.( 2009 (11) TMI 27 (SC)), the issue before their Lordship was whether the omission of second proviso to Section 43B of the I.T. Act 1961 by the Finance Act 2003 operated w.e.f. 1.2.2004 or whether it operated retrospectively w.e.f. 1.4.1988. In the said case also, the issue was concerning the contribution payable by the employer to the P.F/Superannuation Fund or any other Fund of welfare of the employees. decision in favour of the Assessee, assessee’s appeal is partly allowed for the statistical purposes - ITA No. 6847/Mum/2008 - - - Dated:- 28-1-201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessee submitted that the Ld CIT(A) has merely followed the earlier order. The ld Counsel also referred to page No. 107, 113 of the Paper Book where the copy of the Tribunal order in assessee s own case for the A.Y. 1999-00 to 2004-05 are placed and submitted that this issue is a recurring issue. Hence, the same may be restored. We have also heard the Ld D.R. On rival submission, we find that M/s. Balaji Films Pvt. Ltd. had assigned a trade mark for a token amount of Rs. 100/- and registered the same as Pik . The said trade mark was taken over by erstwhile M/s. Veekay Industries from whom the assessee company has taken over the business. Before the transfer of the business along with the assets and liability M/s. Veekay Industrie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e record, the facts reveal as under : The assessee has debited the donation of Rs. 39,200/- to the Profit Loss Account . The A.O was of the opinion that the same was not allowable. The assessee contended that the company is labour intensive and manufacturing writing instruments. The assessee s unit is based in Gujarat and to carry on the business smoothly by maintaining harmonious relations has given donations on various occasions to encourage the workers as well as the local people on the occasion like Navaratri etc., The assessee contended that the same expenditure is allowable u/s. 37(1). The A.O did not agree to the explanation of the assessee and made the disallowance. The assessee carried the issue before the Ld CIT(A) but without s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchase of the machinery and therefore, any loss incurred on a/c of same is a capital loss. The Ld CIT(A) confirmed the disallowance made by the A.O. on this issue. The Ld Counsel relied on the decision of the Hon ble High Court of Rajasthan in the case of CIT v/s. Anjanikumar Co. Ltd., 259 ITR 114 ( Raj.). He alternatively pleaded that if the loss is not allowed as an business expenditure, then the A.O. may be directed to allow the carry forward of loss as per provisions of law. We have heard the Ld D.R. The facts are not in dispute that the advances were made for purchase of machinery but as the machinery was not supplied, and hence the assessee written off the said advances treating the same as a revenue expenditure u/s. 37(1). 9. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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