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2015 (9) TMI 276 - ITAT LUCKNOW

2015 (9) TMI 276 - ITAT LUCKNOW - TMI - Disallowance of depreciation relatable to scrap discarded machinery - Assessing Officer has made disallowance out of depreciation on the basis that out of repairs to plant & machinery, 10% of material cost of spares is to be considered as scrap value and the same should be reduced from the WDV of the plant & machinery and consequently, the depreciation is to be reduced to that extent - CIT(A) deleted disallowance - Held that:- Unless this is brought on rec .....

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that block which is sold or discarded or demolished or disturbed, during that previous year together with the amount of scrap value, if any, subject to this that such deduction is not exceeding the WDV. In the present case, the scrap value sought to be reduced by the Assessing Officer is not on account of assets being sold or discarded or demolished or disturbed. In the present case, the asset is put to repair and the material used for repair of plant & machinery cannot be said to be the scrap v .....

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CIT vs. Sugauli Sugar Works (P) Ltd. [1999 (2) TMI 5 - SUPREME Court] . This is not the case of the Revenue that the liability is not appearing in the balance sheet. The only objection of the Assessing Officer is that the liability is more than three years old. Hence, under these facts, the disputed issue is covered in favour of the assessee - Decided against revenue.

Disallowance of sales promotion incentive - CIT(A) deleted addition - Held that:- The decision of CIT(A) is on the ba .....

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e order of CIT(A) on this issue - Decided against revenue.

Addition of of telephone expenses - CIT(A) deleted addition - Held that:- This issue is covered in favour of the assessee by the judgment of Hon’ble Gujarat High Court rendered in the case of Sayaji Iron and Engg. Co. vs. CIT [2001 (7) TMI 70 - GUJARAT High Court] where it is held that even if there is personal use of telephone and vehicles etc. by the Directors / employees of the company, the same can be included in the perqu .....

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tants of India. He has also observed that as per various judgments reported in 298 ITR 163, 300 ITR 78 and 309 ITR 102, the issue is covered in favour of the assessee because in these judgments, it was held that if there is change in the method of valuation of closing stock due to mandatory requirement and that change has been consistently followed by the assessee, no addition is called for. This is not the case of the Revenue that the change in method of valuation of closing stock has not been .....

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will benefit the business of the assessee. The issue in dispute is regarding expenses incurred by the assessee company in respect of architect award of the year. In our considered opinion, even if the assessee is in the business of manufacturing of only one time of construction material i.e. cement, such an expense on account of architect award, can be very much for business purposes because it will help the assessee company to promote its cement business. This is also noted by learned CIT(A) th .....

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e ORDER PER A. K. GARODIA, A.M. First, we take up the revenue s appeal in ITA No. 563/Lkw/2010 for A.Y. 1992 - 93. 2. Ground No. 1 of the appeal is as under: On the facts and in the circumstances of the case, the Ld CIT (A) has erred in restricting the disallowance up to the extent of 50% on account of expenses on Kamala Retreat ignoring that these expenses are hit by section 37 (4) and 37 (5) of the Act. 3. It was agreed by both sides that identical issue was raised in the appeal of the revenue .....

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dance with law after considering the latest decision of Hon ble Apex Court in the case of Britannia Industries Ltd. (supra) after finding out as to whether Kamla Retreat is guest house or not as per this judgment of Hon ble Apex Court and if it is found that Kamla Retreat is guest house then no part of the expenditure incurred can be allowed as per this judgment of Hon ble Apex Court. The Assessing Officer should pass necessary order as per law after providing reasonable opportunity of being hea .....

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9,218/-on account of guest house maintained in Kamla Castle at Mussorie even though no details of the expenditure were produced before him and as such, the relief given is without basis. 7. It was agreed by both sides that identical issue was raised in the appeal of the revenue for the A.Y. 1990 - 91 as per Ground No. 13 and this appeal was heard on 27.04.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 8. We have considered .....

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nate interest on interest free loans to M/s J. K. Satoh Agricultural Machines limited while the Assessing Officer has established that the advances had been made to the subsidiary company out of bank overdraft. 10. It was agreed by both sides that identical issue was raised in the appeal of the revenue for the A.Y. 1991 - 92 as per Ground No. 6 and this appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal orders in that yea .....

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expenses to the extent of 50%. Similarly in assessment year 81-82 also, the issue before the Tribunal was that as to whether 50% of the expenses of a guest house Kamla Retreat is admissible as deduction. This issue was decided by the Tribunal against the assessee. In assessment year 85-86, 100% amount of the expenses for Kamla Retreat guest house was disallowed by the authorities below and under these facts, it was held by the Tribunal that such expenses would be allowed to the extent of 50% of .....

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this manner, he has allowed relief of ₹ 1,01,796/-. We find that this relief is in line with earlier Tribunal orders for three different preceding years. But in assessment year 88-89, in I.T.A. No.2633/Del/94 in Para No. 14 to 18, the Tribunal has considered the judgment of Hon ble Apex Court rendered in the case of Britannia Industries Ltd. Vs Commissioner of Income-tax as reported in [2005] 278 ITR 546 (SC). In that year, it was noted by the Tribunal that CIT(A) has confirmed the entire .....

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a latest decision of Hon ble Apex Court in the case of Britannia Industries Ltd. (supra). We find that this judgment of Hon ble Apex Court in the case of Britannia Industries Ltd. (supra), is dated 05/10/2005. All the earlier Tribunal orders cited by both the sides up to assessment year 85-86 are of earlier date and the latest order is dated 21/10/94 in I.T.A. No.5850/Del/91 for assessment year 85-86. Hence, we are of the considered opinion that the latest Tribunal decision in I.T.A. No.2633/Del .....

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er finding out as to whether Kamla Retreat is guest house or not as per this judgment of Hon ble Apex Court and if it is found that Kamla Retreat is guest house then no part of the expenditure incurred can be allowed as per this judgment of Hon ble Apex Court. The Assessing Officer should pass necessary order as per law after providing reasonable opportunity of being heard to the assessee. Accordingly, ground No. 6 is allowed for statistical purposes. 12. Ground No. 4 (a) of the appeal is as und .....

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ided on similar line as per tribunal order in that year. 14. We find that in A.Y. 1987 - 88, this issue was decided by the tribunal in favour of the assessee and against the revenue as per Para No. 28 of the tribunal order in A.Y. 1987 - 88. Accordingly, in the present year also, this issue is decided on similar line and the Ground No. 4 (a) of the revenue is rejected. 15. Ground No. 4 (b) of the appeal is as under: On the facts and in the circumstances of the case, the Ld CIT (A) has erred in d .....

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of 70%. 17. We find that in A.Y. 1987 - 88, this issue was decided by the tribunal to the extent of 70% of expenses in favour of the assessee and against the revenue as per Para No. 31 of the tribunal order in A.Y. 1987 - 88. Accordingly, in the present year also, this issue is decided on similar line and it is held that only 30% disallowance is justified. Since, learned CIT (A) has allowed full relief, the Ground No. 4 (b) of the revenue is partly allowed because we uphold the disallowance to .....

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e present year, this ground can be decided on similar line as per tribunal order in that year. 20. We find that in A.Y. 1987 - 88, this issue was decided by the tribunal in favour of the revenue and against the assessee as per Para No. 43.2 of the tribunal order in A.Y. 1987 - 88. Accordingly, in the present year also, this issue is decided on similar line and the Ground No. 4 (c) of the revenue is allowed. 21. Ground No. 4 (d) of the Revenue s appeal is as under: On the facts and in the circums .....

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t in A.Y. 1987 - 88, this issue was decided by the tribunal in favour of the revenue and against the assessee as per Para No. 43.4 of the tribunal order in A.Y. 1987 - 88. Accordingly, in the present year also, this issue is decided on similar line and the Ground No. 4 (d) of the revenue is allowed. 24. Ground No. 4 (e) of the Revenue is as under: On the facts and in the circumstances of the case, the Ld CIT (A) has erred in deleting the addition of ₹ 33,748/- on account of provisions for .....

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ssessee and against the revenue as per Para No. 45 of the tribunal order in A.Y. 1987 - 88. Accordingly, in the present year also, this issue is decided on similar line and the Ground No. 4 (e) of the revenue is rejected. 27. Ground No. 5 (a) of the Revenue s appeal is as under: On the facts and in the circumstances of the case, the Ld CIT (A) has erred in allowing relief of ₹ 1,50,000/- on account of depreciation on other assets of the guest houses without appreciating the facts that the .....

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tribunal order in A.Y. 1991 - 92. Accordingly, in the present year also, this issue is decided on similar line and the Ground No. 5(a) of the revenue is rejected. 30. Ground No. 5 (b) of the Revenue s appeal is as under: On the facts and in the circumstances of the case, the Ld CIT (A) has erred in deleting the addition of ₹ 7,00,000/- on account of other maintenance expenses of guest house without appreciating the facts that the assessee did not maintain the books in respect of guest hous .....

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y, in the present year also, this issue is decided on similar line and the Ground No. 5(b) of the revenue is rejected. 33. Ground No. 6 of the Revenue is as under: On the facts and in the circumstances of the case, the Ld CIT (A) has erred in allowing relief of ₹ 1120,993/- on account of mess expenses ignoring that the expenditure hit by provisions contained u/s 37 (4) of the I. T. Act. 34. It was agreed by both sides that identical issue was raised in the appeal of the revenue for the A.Y .....

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. This Ground No. 6 of the revenue is rejected. 36. Ground No. 7 of the Revenue is as under: On the facts and in the circumstances of the case, the Ld CIT (A) has erred in holding that surplus receipts over refunds in the cops deposits account was not the income of the assessee and thereby deleting the addition of ₹ 19,55,735/-. 37. It was agreed by both sides that identical issue was raised in the appeal of the revenue for the A.Y. 1987 - 88 as per Ground No. 1 and this appeal was heard o .....

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owed. 39. Ground No. 8 of the Revenue is as under: On the facts and in the circumstances of the case, the Ld CIT (A) has erred in deleting the disallowance on account of closing stock of stores and spare even though the assessee could not prove that all items charged under this head were routed through stores in spite of specific opportunities given. 40. It was agreed by both sides that identical issue was raised in the appeal of the revenue for the A.Y. 1991 - 92 as per Ground No. 22 and this t .....

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d. 42. Ground No. 9 of the Revenue s appeal is as under: On the facts and in the circumstances of the case, the Ld CIT (A) has erred in holding that the Guarantee charges of ₹ 4,32,444/- as revenue expenditure. 43. It was agreed by both sides that identical issue was raised in the appeal of the revenue for the A.Y. 1991 - 92 as per Ground No. 17 and this these appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order .....

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ed in deleting the disallowance of ₹ 9,59,842/-under the head travelling expenses even though these expenses were of entertainment in nature and hit by section 37 (2A) of the Act. 46. It was agreed by both sides that identical issue was raised in the appeal of the revenue for the A.Y. 1991 - 92 as per Ground No. 18 (a) and this these appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 47. We find .....

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llowance of 50% i.e. ₹ 179,924/- being expenses of entertainment in nature even though these expenses were hit by section 37 (2A) of the Act. 49. It was agreed by both sides that this issue was also raised in the appeal of the revenue for the A.Y. 1991 - 92 as per Ground No. 18 (a) and this these appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 50. We find that in A.Y. 1991 - 92, this issue was .....

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nt of presentation of articles even though these expenses were hit by section 37 (2A) of the Act. 52. It was agreed by both sides that this issue was also raised in the appeal of the revenue for the A.Y. 1991 - 92 as per Ground No. 18 (b) and this these appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 53. We find that in A.Y. 1991 - 92, this issue was decided by the tribunal in favour of the assessee .....

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oth sides that this issue was also raised in the appeal of the revenue for the A.Y. 1991 - 92 as per Ground No. 16 and this these appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 56. We find that in A.Y. 1991 - 92, this issue was decided by the tribunal in favour of the assessee and against the revenue as per Para 62 of the tribunal order for that year. No difference in facts could be pointed out by .....

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these appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 59. We find that in A.Y. 1991 - 92, this issue was decided by the tribunal in favour of the assessee and against the revenue as per Para 62 of the tribunal order for that year. No difference in facts could be pointed out by any side and therefore, in the present year also, this issue is decided on similar line. Accordingly, this ground No. 13 is .....

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, in the present year, this ground can be decided on similar line as per tribunal order in that year. 62. We find that in A.Y. 1991 - 92, this issue was decided by the tribunal in favour of the assessee and against the revenue as per Para 44 of the tribunal order for that year. No difference in facts could be pointed out by any side and therefore, in the present year also, this issue is decided on similar line. Accordingly, this ground No. 14 is rejected. 63. Ground No. 15 of the Revenue s appea .....

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A.Y. 1991 - 92, this issue was decided by the tribunal in favour of the assessee and against the revenue as per Para 83 of the tribunal order for that year. No difference in facts could be pointed out by any side and therefore, in the present year also, this issue is decided on similar line. Accordingly, this ground No. 15 is rejected. 66. Ground No. 16 (a) is as under: On the facts and in the circumstances of the case, the Ld CIT (A) has erred in allowing 100% depreciation on Machinery for ener .....

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year. 68. We find that in A.Y. 1991 - 92, this issue was decided by the tribunal in favour of the assessee and against the revenue as per Para 123 of the tribunal order for that year. No difference in facts could be pointed out by any side and therefore, in the present year also, this issue is decided on similar line. Accordingly, this ground No. 16 (a) is rejected. 69. Ground No. 16 (b) is as under: On the facts and in the circumstances of the case, the Ld CIT (A) has not correct in deleting th .....

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at in A.Y. 1991 - 92, this issue was decided by the tribunal in favour of the assessee and against the revenue as per Para 120 of the tribunal order for that year. No difference in facts could be pointed out by any side and therefore, in the present year also, this issue is decided on similar line. Accordingly, this ground No. 16 (b) is rejected. 72. Ground No. 17 is as under: On the facts and in the circumstances of the case, the Ld CIT (A) has erred in deleting the addition of ₹ 1,28,370 .....

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sed the material available on record and gone through the orders of the authorities below and the Tribunal decision cited by Learned A.R. of the assessee. In that year, the Tribunal has allowed relief to the assessee under similar facts and Learned DR of the revenue could not point out any difference in facts and therefore, we do not find any reason to take a contrary view in the present year. Since, the order of CIT (A) is in line with earlier Tribunal decision, we decline to interfere in the o .....

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Ground No. 5 and this appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 77. We find that in A.Y. 1991 - 92, this issue was decided by the tribunal in favour of the assessee and against the revenue as per Para 29 of the tribunal order for that year. No difference in facts could be pointed out by any side and therefore, in the present year also, this issue is decided on similar line. Accordingly, this .....

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in favour of the assessee by the Tribunal decision for assessment year 81-82 in I.T.A. No.2545/Del/85, available on page 56 - 62 & 84 - 95 of the paper book. 80. We have considered the rival submissions, perused the material available on record and gone through the orders of the authorities below and the Tribunal decisions cited by Learned A.R. of the assessee. In A.Y. 1981 - 82, the Tribunal has allowed relief to the assessee under similar facts and Learned DR of the revenue could not poin .....

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enses on customary presentation even though the provisions of section 37 (2A) is applicable. 82. It was agreed by both sides that identical issue was raised in the appeal of the revenue for the A.Y. 1991 - 92 as per Ground No. 4 (a) and this appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 83. We find that in A.Y. 1991 - 92, this issue was decided by the tribunal in favour of the assessee and against .....

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agreed by both sides that identical issue was raised in the appeal of the revenue for the A.Y. 1991 - 92 as per Ground No. 4 (b) and this appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 86. We find that in A.Y. 1991 - 92, this issue was decided by the tribunal in favour of the assessee and against the revenue as per Para No. 17 of the tribunal order in A.Y. 1991 - 92. Accordingly, in the present yea .....

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nd therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 89. We find that in A.Y. 1991 - 92, this issue was decided by the tribunal in favour of the assessee and against the revenue as per Para No. 20 of the tribunal order in A.Y. 1991 - 92. Accordingly, in the present year also, this issue is decided on similar line and the Ground No. 20 (c) of the revenue is rejected. 90. Ground No. 20(d) reads as under: On the facts and in the circumsta .....

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find that in A.Y. 1991 - 92, this issue was decided by the tribunal in favour of the assessee and against the revenue as per Para No. 23 of the tribunal order in A.Y. 1991 - 92. Accordingly, in the present year also, this issue is decided on similar line and the Ground No. 20 (d) of the revenue is rejected. 93. Ground No. 20(e) reads as under: On the facts and in the circumstances of the case, the Ld CIT (A) has erred in deleting the addition of ₹ 15,26,996/- even though the assessee fail .....

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tribunal order in A.Y. 1991 - 92. Accordingly, in the present year also, this issue is decided on similar line and the Ground No. 20 (e) of the revenue is rejected. 96. Ground No. 21 reads as under: On the facts and in the circumstances of the case, the Ld CIT (A) is not correct in allowing the prospecting expenditure u/s 35E. 97. Learned D.R. of the Revenue supported the assessment order. Learned A.R. of the assessee supported the order of learned CIT(A). He also submitted that this issue is c .....

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the authorities below and the Tribunal decision cited by Learned A.R. of the assessee. In assessment year 1993-94, the Tribunal has restored the matter back to the file of the A.O. in view of finding in assessee s appeal for the same year in ITA No. 589/Luc/2002 available at pages 142 - 144 of the paper book. None of both sides could point out any difference in facts and therefore, we do not find any reason to take a contrary view in the present year. Accordingly, we set aside the order of CIT ( .....

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learned CIT(A). He also submitted that this issue is covered in favour of the assessee by the Tribunal decision for assessment year 1993-94 in I.T.A. No.687/Luc/02, available on pages 194 of the paper book. He also submitted that in that year, the tribunal restored the matter back to the file of the A.O. in view of finding in assessee s appeal for the same year in ITA No. 589/Luc/2002 available at pages 142 - 144 of the paper book. 101. We have considered the rival submissions, perused the mater .....

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ent year. Accordingly, we set aside the order of CIT (A) on this issue and restore this matter back to the file of the A.O. for fresh decision with same directions as were given by the tribunal in A.Y. 1993 - 94. Accordingly, this ground No. 22 is allowed for statistical purposes. 102. Ground No. 23 is as under: On the facts and in the circumstances of the case, the Ld CIT (A) has erred in deleting the disallowance of ₹ 2,51,244/-even though the expenses were not relating to the sale made .....

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t this finding and hence, we decline to interfere in the order of CIT (A) on this issue. Accordingly, Ground No. 23 of the revenue is rejected. 105. Ground No. 24 is as under: On the facts and in the circumstances of the case, the Ld CIT (A) has erred in deleting the disallowance of ₹ 23,47,459/-under the head repairs to building expenses even though these expenses were of capital in nature. 106. It was agreed by both sides that identical issue was raised in the appeal of the revenue for t .....

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ected. 108. Ground No. 25 is as under: On the facts and in the circumstances of the case, the Ld CIT (A) has erred in deleting the addition of ₹ 21,89,770/- on account of articles intended for presentation even though the expenditure hit by section 37 (2A) of the Act. 109. It was agreed by both sides that identical issue was raised in the appeal of the revenue for the A.Y. 1991 - 92 as per Ground No. 24 (e) and this appeal was heard on 01.05.2015 and therefore, in the present year, this gr .....

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n allowing the relief of ₹ 18,96,344/-under the head General Charges for which no details were filed. 112. It was agreed by both sides that identical issue was raised in the appeal of the revenue for the A.Y. 1991 - 92 as per Ground No. 8 and this appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 113. We find that in A.Y. 1991 - 92, this issue was decided by the tribunal partly in favour of the .....

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ecided on similar line and the Ground No. 8 of the revenue is allowed in part. Out of disallowance of ₹ 769,636/- on presentation of articles and gifts, we uphold the disallowance of 30% of ₹ 769,636/-. In addition to this, disallowance in respect of those expenses, for which, no detail is available as per A.O., disallowance was of ₹ 540,361/- and out of this, relief is allowed by CIT (A) to the extent of R. 459,307/- i.e. 90%. In A.Y. 1987 - 88, on this aspect, the order of CI .....

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those expenses, for which, no detail is available as per A.O., disallowance was of ₹ 1039,122/- and in A.Y. 1991 - 92, on this aspect, the order of CIT (A) was reversed and that of the A.O. was restored. Accordingly, in the present year also, on this aspect, we reverse the order of CIT (A) and restore that of the A.O. On remaining issues, we do not find any reason to interfere in the order of CIT (A). This ground is partly allowed. 116. Ground No. 27 is as under: On the facts and in the c .....

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le on pages 200 of the paper book. He also submitted that this issue is covered in favour of the assessee by the judgment of Hon ble Allahabad High Court rendered in the case of CIT vs. Modi Xerox Ltd., 41 DTR 50. 118. We have considered the rival submissions, perused the material available on record and gone through the orders of the authorities below and the Tribunal decision cited by Learned A.R. of the assessee. By following the tribunal order for A.Y. 1993 - 94 and the judgment of Hon ble A .....

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he circumstances of the case, the learned Commissioner of Income Tax (Appeals) erred both on fact and in law in :- 1. Kamla Retreat Expenses Confirming disallowance of ₹ 2,83,354/- (being 50% of ₹ 566,708/-) by wrongly treating the same as expenditure hit by section 37(4) / 37(5) of the Act. 123. It was agreed by both sides that identical issue was raised in the appeal of the assessee for the A.Y. 1991 - 92 as per Ground No. 1 and this appeal was heard on 01.05.2015 and therefore, in .....

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jected. 125. Ground No. 2 (a) is as under: Employees Welfare Expenses (a) Not allowing a sum of ₹ 5,56,594/- (being 50% of ₹ 11,13,187/-) holding it to be entertainment expenses. 126. It was agreed by both sides that identical issue was raised in the appeal of the assessee for the A.Y. 1991-92 as per Ground No. 13(a) in that year and the appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 12 .....

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both on fact and in law in :- Employees Welfare Expenses Confirming disallowance of ₹ 4,45,727/- (being 25% of ₹ 17,82,908/) as unconnected with business. 129. It was agreed by both sides that identical issue was raised in the appeal of the assessee for the A.Y. 1991-92 as per Ground No. 13(b) in that year and the appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 130. We find that in A.Y. .....

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w in :- Employees Welfare Expenses Confirming disallowance of ₹ 35,485/- by holding it to be Guest House Expenses. 132. It was agreed by both sides that identical issue was raised in the appeal of the assessee for the A.Y. 1991-92 as per Ground No. 13(c) in that year and the appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 133. We find that in A.Y. 1991-92 in assessee s own appeal, this issue w .....

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um of ₹ 19,751/- by holding it to be Capital Expenditure without appreciating the facts of the case. 135. It was agreed by both sides that identical issue was raised in the appeal of the assessee for the A.Y. 1991-92 as per Ground No. 13(c) in that year and the appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 136. We find that in A.Y. 1991-92 in assessee s own appeal, this issue was decided by .....

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1993-94 in I.T.A. No.687/Luc/2002, available on pages 181 - 182 of the paper book. 138. We have considered the rival submissions, perused the material available on record and gone through the orders of the authorities below and the Tribunal decision cited by Learned A.R. of the assessee. In earlier assessment year 1993-94, the Tribunal has allowed relief to the assessee under similar facts and Learned DR of the revenue could not point out any difference in facts and therefore, we do not find an .....

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allowable nature as also not considering the judicial pronouncement pressed into service by the appellant. 140. It was agreed by both sides that identical issue was raised in the appeal of the assessee for the A.Y. 1991-92 as per Ground No. 17(a) in that year and the appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 141. We find that in A.Y. 1991-92 in assessee s own appeal, this issue was decided by .....

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m of ₹ 50,000/- on the ad hoc basis towards depreciation on other assets of guest house. 143. It was agreed by both sides that identical issue was raised in the appeal of the assessee for the A.Y. 1991-92 as per Ground No. 17(b) in that year and the appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 144. We find that in A.Y. 1991-92 in assessee s own appeal, this issue was decided by the tribunal .....

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a) In confirming disallowance of a sum of ₹ 1,00,000/-towards other maintenance expenses of guest house on ad hoc basis. 146. It was agreed by both sides that identical issue was raised in the appeal of the assessee for the A.Y. 1991-92 as per Ground No. 17(c) in that year and the appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 147. We find that in A.Y. 1991-92 in assessee s own appeal, this i .....

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of depreciation of ₹ 17,222/-on amount offered as capital in Assessment year 1989 90 out of Rates & Taxes. 149. Learned D.R. of the Revenue supported the orders of the authorities below. Learned A.R. of the assessee reiterated the contentions raised before the lower authorities. 150. We have considered the rival submissions. We find that it is noted by the A.O. in the assessment order that the assessee has stated before him that the assessee has offered an amount of ₹ 232,572/- a .....

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ted. 151. Ground No. 6 is as under:- On the facts and in the circumstances of the case, the learned Commissioner of Income Tax (Appeals) erred both on fact and in law in :- Product Development Expenses: In not allowing ₹ 224,902/- (being 50% of ₹ 449,803/-) holding it to be Entertainment Expenses. 152. It was agreed by both sides that identical issue was raised in the appeal of the assessee for the A.Y. 1991-92 as per Ground No. 11 in that year and the appeal was heard on 01.05.2015 .....

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under:- On the facts and in the circumstances of the case, the learned Commissioner of Income Tax (Appeals) erred both on fact and in law in :- Cash Payment Exceeding ₹ 10,000/-: Confirming disallowace of an order of ₹ 212,107/-being genuine cash payment in excess of ₹ 10,000/-, though all these payments fall to be governed by second proviso to section 40A (3) and while simultaneously not following the judicial pronouncement pressed into service by the appellant. 155. It was ag .....

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l order in assessee s own appeal for assessment year 1991-92, this issue in the present year is decided against the assessee. This ground is rejected. 157. Ground No. 8 is as under:- On the facts and in the circumstances of the case, the learned Commissioner of Income Tax (Appeals) erred both on fact and in law in :- Foreign Travelling Expenses: Not allowing deduction of ₹ 373,058/- being expenses on foreign travelling on the wives of the Directors of the company by not appreciating the fa .....

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the authorities below and the Tribunal decision cited by Learned A.R. of the assessee. In earlier assessment years, the Tribunal has allowed relief to the assessee under similar facts and Learned DR of the revenue could not point out any difference in facts and therefore, we do not find any reason to take a contrary view in the present year. Hence, we delete this disallowance. Accordingly, this ground No. 8 is allowed. 160. Ground No. 9 is as under:- On the facts and in the circumstances of the .....

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the assessee reiterated the contentions raised before the lower authorities. 162. We have considered the rival submissions. We find that it is noted by the learned CIT (A) that the disallowance is on the basis of adverse comments of the Tax Auditors and the assessee could not bring any material on record to justify interference in the assessment order on this issue. Since no material is brought before us also to justify interference in the assessment order on this issue, we decline to interfere .....

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in that year and the appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 165. We find that in A.Y. 1991-92 in assessee s own appeal, this issue was decided by the tribunal in favour of the assessee as per Para 132 of the tribunal order in A.Y. 1991-92. Therefore, in line with the Tribunal order in assessee s own appeal for assessment year 1991-92, this issue in the present year is decided in favour of .....

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per Ground No. 2 (b) in that year and the appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 168. We find that in A.Y. 1991-92 in assessee s own appeal, this issue was decided by the tribunal against the assessee as per Para 135 of the tribunal order in A.Y. 1991-92. Therefore, in line with the Tribunal order in assessee s own appeal for assessment year 1991-92, this issue in the present year is decide .....

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terated the contentions raised before the lower authorities. 171. We have considered the rival submissions. We find that it is noted by the learned CIT (A) on page 37 of his order that the assessee made provision of ₹ 22.67 Lacs in the present year but credit notes were issued up to Accounting Year 1993 - 94 of ₹ 19,70,452/- only. He has given a clear finding that this was a provision for contingent liability and nothing is produced before us that this is an ascertained liability and .....

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ent expenses. 173. It was agreed by both sides that identical issue was raised in the appeal of the assessee for the A.Y. 1991-92 as per Ground No. 5 (a) in that year and the appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 174. We find that in A.Y. 1991-92 in assessee s own appeal, this issue was decided by the tribunal against the assessee as per Para 144 of the tribunal order in A.Y. 1991-92. Ther .....

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etails were filed. 176. It was agreed by both sides that identical issue was raised in the appeal of the assessee for the A.Y. 1991-92 as per Ground No. 5 (c) in that year and the appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 177. We find that in A.Y. 1991-92 in assessee s own appeal, this issue was decided by the tribunal against the assessee as per Para 150 of the tribunal order in A.Y. 1991-92. .....

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facts of the case and judicial pronouncements relied upon by the appellant. 179. It was agreed by both sides that identical issue was raised in the appeal of the assessee for the A.Y. 1991-92 as per Ground No. 5(b) in that year and the appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 180. We find that in A.Y. 1991-92 in assessee s own appeal, this issue was decided by the tribunal in favour of the as .....

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2. It was agreed by both sides that identical issue was raised in the appeal of the assessee for the A.Y. 1991-92 as per Ground No. 6 in that year and the appeal was heard on 01.05.2015 and therefore, in the present year, this ground can be decided on similar line as per tribunal order in that year. 183. We find that in A.Y. 1991-92 in assessee s own appeal, this issue was decided by the tribunal in favour of the assessee as per Para 153 of the tribunal order in A.Y. 1991-92. Therefore, in line .....

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rred in deleting the addition of ₹ 21,42,857/- on account of Proportionate premium on redemption of debenture without appreciating the fact that no premium was payable before expiry of 7 years. 187. It was agreed by both sides that this issue is identical to the issue raised by Revenue in its appeal for assessment year 1991-92 as per ground No. 5 in I.T.A. No.537/Lkw/10, which was heard on 1st May 2015. Both the sides agreed that this issue may be decided on similar line as per the decisio .....

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jected. 189. Ground No. 2 is as under: 2. On the facts and in the circumstances of the case the Commissioner of Income Tax (Appeals)-l, Kanpur has erred in holding that the other consultancy charges of ₹ 5,22,423/- as Revenue expenditure. 190. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). He also submitted that this issue is covered in favour of the assessee by the Tribunal decision in assessment year .....

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l decision, this ground is decided in favour of the assessee. This ground is rejected. 193. Ground No. 3 is as under: 3. On the facts and in the circumstances of the case the Commissioner of Income Tax (Appeals)-l, Kanpur has erred in deleting the addition of ₹ 86,010/- on account expenses on foreign technician ignoring the fact that the expenses were in the nature of entertainment of foreign technician. 194. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. o .....

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ed D.R. of the Revenue could not point out any difference in facts in the present year, we do not find any reason to take a contrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 196. Ground No. 4 is as under: 4. On the facts and in the circumstances of the case the Commissioner of Income Tax (Appeals)-l, Kanpur has erred in allowing relief of ₹ 63,23,080/- on account of maint .....

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ssue may be decided on similar line as per the decision of the Tribunal in assessment year 91-92. 198. We have considered the rival submissions. We find that identical issue was raised by Revenue in assessment year 91-92 as per ground No. 28 and in that year, the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 106 - 114 of that Tribunal decision. On the same line, in the present year also, this issue is decided in favour of the assessee and against .....

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raised by Revenue in its appeal for assessment year 1991-92 as per ground No. 20 in I.T.A. No.537/Lkw/10, which was heard on 1st May 2015. Both the sides agreed that this issue may be decided on similar line as per the decision of the Tribunal in assessment year 91-92. 201. We have considered the rival submissions. We find that identical issue was raised by Revenue in assessment year 91-92 as per ground No. 20 and in that year, the issue was decided by the Tribunal in favour of the assessee and .....

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not establish that all the expenses were revenue in nature and wholly and exclusively related to the business. 203. It was agreed by both sides that this issue is identical to the issue raised by Revenue in its appeal for assessment year 1991-92 as per ground No. 17 in I.T.A. No.537/Lkw/10, which was heard on 1st May 2015. Both the sides agreed that this issue may be decided on similar line as per the decision of the Tribunal in assessment year 91-92. 204. We have considered the rival submission .....

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the case the Commissioner of Income Tax (Appeals)-I, Kanpur has erred in deleting the addition of ₹ 1,74,481/- on account of Gardening charges ignoring the fact that the expenses were not properly verifiable, even though the assessee failed to furnish the proper vouchers for verification in spite of specific opportunity was given. 206. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). He also submitted th .....

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do not find any reason to take a contrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 208. Ground No. 8 is as under: 8. On the facts and in the circumstances of the case the Commissioner of Income Tax (Appeals)-l, Kanpur has erred in deleting the addition of ₹ 9,66,096/- on account of presentation of articles even though the expenditure hit by section 37(2A) of the Act. 209 .....

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ar, the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 115 - 117 of that Tribunal decision. On the same line, in the present year also, this issue is decided in favour of the assessee and against the Revenue and accordingly ground No. 8 of the Revenue is rejected. 211. Ground No. 9 is as under: 9. On the facts and circumstances of the case the Commissioner of Income Tax (Appeals)-I, Kanpur has erred in deleting the disallowance of ₹ 1,07,09, .....

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red the rival submissions. We find that identical issue was raised by Revenue in assessment year 91-92 as per ground No. 9 and in that year, the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 39 - 41 of that Tribunal decision. On the same line, in the present year also, this issue is decided in favour of the assessee and against the Revenue and accordingly ground No. 9 of the Revenue is rejected. 214. Ground No. 10 is as under: 10. On the facts an .....

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that this issue may be decided on similar line as per the decision of the Tribunal in assessment year 90-91. 216. We have considered the rival submissions. We find that identical issue was raised by Revenue in assessment year 90-91 as per ground No. 10 (a) and in that year, the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 37 - 39 of that Tribunal decision. On the same line, in the present year also, this issue is decided in favour of the assess .....

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ions. We find that identical issue was raised by Revenue as per ground No. 6 in assessment year 91-92 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 30 - 32 of the Tribunal decision in assessment year 91-92. On the same line, in the present year also, this issue is decided in favour of the assessee and against the Revenue and accordingly ground No. 11 of the Revenue is rejected. 219. Ground No. 12 is as under: 12. On the facts and in the c .....

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No. 2 in assessment year 91-92 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 5 - 7 of the Tribunal decision in assessment year 91-92. On the same line, in the present year also, this issue is decided in favour of the assessee and against the Revenue and accordingly ground No. 12 of the Revenue is rejected. 221. Ground No. 13 is as under: 13. On the facts and in the circumstances of the case the Commissioner of Income Tax (Appeals)-l, Kanp .....

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er Para 86 of the Tribunal decision in assessment year 91-92. On the same line, in the present year also, this issue is decided in favour of the assessee and against the Revenue and accordingly ground No. 13 of the Revenue is rejected. 223. Ground No. 14 is as under: 14. On the facts and in the circumstances of the case the Commissioner of Income Tax (Appeals)-l, Kanpur has erred in deleting disallowance of ₹ 43,188/- on account of payment made to clubs ignoring the fact that these expense .....

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3 of the Revenue is rejected. 225. Ground No. 15 is as under: 15. On the facts and in the circumstances of the case the Ld. CIT(A) was not correct in allowing the relief of Rs. ₹ 55,00,000/- under the head General Charges for which no details were filed as well as the expenses were also not properly vouched and unverifiable. 226. We have considered the rival submissions. We find that identical issue was raised by Revenue as per ground No. 8 in assessment year 91-92 and the issue was decide .....

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es are not available in the assessment order or in the order of learned CIT(A) and therefore, we set aside the order of CIT(A) on this issue and restore the matter to the file of the Assessing Officer in line with the Tribunal decision in assessment year 1991-92 as per Para 36 - 38 of the Tribunal order in that year. This ground of the Revenue is allowed for statistical purposes. 227. Ground No. 16 is as under: 16. On the facts and in the circumstances of the case the Commissioner of Income Tax .....

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enue as per ground No. 24(a) to 24(c) in assessment year 91-92 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 87 to 95 of the Tribunal decision in assessment year 91-92. On the same line, in the present year also, this issue is decided in favour of the assessee and against the Revenue and accordingly ground No. 16 of the Revenue is rejected. 229. Ground No. 17 is as under: 17. On the facts and in the circumstances of the case the Commissio .....

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favour of the assessee and against the Revenue as per Para 243 - 244 in assessment year 93-94. On the same line, in the present year also, this issue is decided in favour of the assessee and against the Revenue and accordingly ground No. 17 of the Revenue is rejected. 231. Ground No. 18 is as under: 18. On the facts and circumstances of the case, the Commissioner of Income Tax (Appeals)-l, Kanpur has erred in deleting the disallowance up to 80% i.e. ₹ 64,00,000/- on account of sales promot .....

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he assessee and against the Revenue and accordingly ground No. 18 of the Revenue is rejected. 233. Ground No. 19 is as under: 19. On the facts and circumstances of the case the Commissioner of Income Tax (Appeals)-l, Kanpur has erred in deleting the disallowance of ₹ 1,22,167/- under the head traveling out of pocket expenses even though these expenses related to guest house expenses and were of entertainment in nature and hit by section 37(2A) of the Act. 234. D.R. of the Revenue supported .....

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out any difference in facts in the present year and therefore, we do not find any reason to take a contrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 236. Ground No. 20 is as under: 20. On the facts and circumstances of the case the Commissioner of Income Tax (Appeals)-l, Kanpur is not correct in allowing the prospecting expenditure u/s 35E. 237. As per ground No. 21 in assessm .....

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mmissioner of Income Tax (Appeals)-l, Kanpur is not correct in allowing equity issue expenses u/s 35D. 239. As per ground No. 22 in assessment year 1992-93 decided as per Para 101 above, this issue has been restored back to the file of the Assessing Officer for fresh decision and accordingly, in the present year also, order of CIT(A) is set aside and matter is restored back to the file of the Assessing Officer as per the direction of the Tribunal in assessment year 92-93 as per Para 101 above. T .....

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see supported the order of learned CIT(A). He also submitted that this issue is covered in favour of the assessee by the tribunal order in assessee s own case for assessment year 93-94, copy available in the paper book. 242. We have considered the rival submissions. We find that this issue is covered in favour of the assessee by the Tribunal order in assessee s own case for assessment year 93-94. Since Learned D.R. of the Revenue could not point out any difference in facts in the present year, w .....

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. Act. 244. We have considered the rival submissions. We find that identical issue was raised by Revenue as per ground No. 6 in assessment year 92-93 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 35 above of the Tribunal decision in assessment year 92-93. On the same line, in the present year also, this issue is decided in favour of the assessee and against the Revenue and accordingly ground No. 23 of the Revenue is rejected. 245. Ground .....

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n was drawn to Para 263 of the Tribunal order in that year. Accordingly, in the present year also, this issue is decided against the assessee and consequently, ground No. 24 of the Revenue s appeal is allowed. 247. Ground No. 25 is as under: 25. On the facts and in the circumstances of the case the Commissioner of Income Tax (Appeals)-l, Kanpur has erred in allowing relief of ₹ 78,95,157/- on account of expenses on Architect award of the year ignoring the fact that the assessee company is .....

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e by the Assessing Officer with the finding that the assessee company is not in actual construction business except for the manufacture of one item i.e. cement and therefore, it is not perceptible as to how this item will benefit the business of the assessee. The issue in dispute is regarding expenses incurred by the assessee company in respect of architect award of the year. In our considered opinion, even if the assessee is in the business of manufacturing of only one time of construction mate .....

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umstances of the case the Commissioner of Income Tax (Appeals)-l, Kanpur has erred in deleting the disallowance of ₹ 2,00,000/- on account of recruitment expenses, ignoring that these expenses were related to guest house expenses which were not related to business. 251. It was fairly agreed by both the sides that this issue is covered in favour of the assessee by the Tribunal decision in assessee s own case for assessment year 95-96 and the relevant Para of the Tribunal order is Para No. 4 .....

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53. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 254. We have considered the rival submissions. We find that learned CIT(A) has followed the judgment of Hon ble Gujarat High Court rendered in the case of Saurashtra Cement and Chemicals Industries Ltd. vs. CIT 213 ITR 523 (Guj). It is also noted that similar addition was deleted in assessment year 95-96 also. Considering these facts, we decline to interfere .....

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ssee supported the order of learned CIT(A). 257. We have considered the rival submissions. We find that it is noted by learned CIT(A) that in assessment years 93-94, 94-95 and 95-96, similar addition was deleted. He has also followed the judgment of Hon ble Apex Court rendered in the case of Atar Singh Gurumukh Singh vs. Income Tax Officer 191 ITR 676 and a judgment of Hon ble Allahabad High Court rendered in the case of CIT vs. Suresh Kumar Agarwal 249 ITR 113. Considering these facts, we do no .....

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e supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 260. We have considered the rival submissions. We find that learned CIT(A) has deleted this addition by following the judgment of Hon ble Apex Court rendered in the case of CIT vs. Sugauli Sugar Works (P) Ltd. 236 ITR 518. This is not the case of the Revenue that the liability is not appearing in the balance sheet. The only objection of the Assessing Officer is that the liability is more .....

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n though the assessee could not-establish that these expenses were incurred for the business purposes in spite of specific opportunity given. 262. It was fairly agreed by both the sides that this issue is covered in favour of the assessee by the Tribunal decision in assessee s own case for assessment year 95-96 and the relevant Para of that Tribunal order is Para No. 405. Hence, we find that this issue is covered in favour of the assessee and therefore, we do not find any reason to take a contra .....

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rned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 265. We have considered the rival submissions. We find that it is noted by learned CIT(A) that the Assessing Officer has made disallowance out of depreciation on the basis that out of repairs to plant & machinery, 10% of material cost of spares is to be considered as scrap value and the same should be reduced from the WDV of the plant & machinery and consequ .....

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43, deduction has to be made from opening WDV on account of sums payable in respect of any asset falling within that block which is sold or discarded or demolished or disturbed, during that previous year together with the amount of scrap value, if any, subject to this that such deduction is not exceeding the WDV. In the present case, the scrap value sought to be reduced by the Assessing Officer is not on account of assets being sold or discarded or demolished or disturbed. In the present case, .....

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the Commissioner of Income Tax (Appeals)-l, Kanpur has erred in allowing 100% depreciation on Machinery for energy saving while such machinery was not directly covered by this type of Plant & Machinery as mentioned in I. T. Rules be calculated treating it as Plant & Machinery instead of part of roads. 267. It was fairly agreed by both the sides that this issue is covered in favour of the assessee by the Tribunal decision in assessee s own case for assessment year 91-92 by way of Ground .....

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ent year, we do not find any reason to take a contrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 269. Ground No. 31(c) is as under: 31(c) On the facts and in the circumstances of the case the Commissioner of Income Tax (Appeals)-l, Kanpur has erred in deleting the addition of ₹ 1,23,754/- on account of depreciation on repairs to plant & machinery treated as capital in .....

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decessor. Otherwise also, when disallowance is made out of repair to plant & machinery on the basis that the same is capital in nature, depreciation on such capital expenditure has to be allowed and therefore, we find no reason to interfere in the order of CIT(A) on this issue. Ground No. 31(c) is rejected. 272. Ground No. 31(d) is as under: 31(d) On the facts and in the circumstances of the case the Commissioner of Income Tax (Appeals)-l, Kanpur was not correct in deleting the disallowance .....

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e and therefore, we do not find any reason to take a contrary view in this year also. Accordingly, this ground is rejected. 274. Ground No. 32 is as under: 32. On the facts and in the circumstances of the case the Commissioner of Income Tax (Appeals)-l, Kanpur has erred in deleting the disallowance of ₹ 1,22,53,550/- on account of Brokerage & Commission even though the expenses were not relating to the sale made during the year under consideration. 275. We have considered the rival sub .....

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Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 276. Ground No. 33 is as under: 33. On the facts and in the circumstances of the case the Commissioner of Income Tax (Appeals)-l, Kanpur has erred in deleting the disallowance of ₹ 39,30,126/- on account of finance charges even though the expenses were not relating to the sale made during the year under consideration. 277. Learned D.R. of the Revenue supported the assessment order whereas learned .....

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x (Appeals)-l, Kanpur has erred in deleting the disallowance under the head closing stock of spares for Machinery repairs. 280. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 281. We have considered the rival submissions. We find that identical issue was raised by Revenue as per ground No. 22 in assessment year 91-92 in I.T.A. No. 537 and the issue was decided by the Tribunal in favour of the assessee and aga .....

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Tax (Appeals)-l, Kanpur has erred in deleting the disallowance of ₹ 1,77,26,216/-under the head repairs to plant & machinery expenses even though these expenses were of capital in nature as well as expenses related to earlier years, no details/incomplete details furnished, not related to business and not verifiable with vouchers. 283. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 284. We have consi .....

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lowing the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 285. Ground No. 36 is as under: 36. On the facts and circumstances of the case the Commissioner of Income Tax (Appeals)-l, Kanpur has erred in deleting the disallowance of ₹ 1,42,34,103/-under the head repairs to building expenses even though these expenses were of capital in nature as well as expenses related to earlier years, no details/in-complete details furnished, not relat .....

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nt year 91-92. Since Learned D.R. of the Revenue could not point out any difference in facts in the present year, we do not find any reason to take a contrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 288. Ground No. 37 is as under: 37. On the facts and in the circumstances of the case the Commissioner of Income Tax (Appeals)-l, Kanpur has erred in deleting the disallowance of & .....

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e sales target set for each distributor or sub-distributor or selling agent. He has given a finding that the liability in respect of incentive was acknowledged by the assessee in the year in question and as such the expenditure is allowable in the present year. This finding of CIT(A) could not be controverted by Learned D.R. of the Revenue and therefore, we do not find any infirmity in the order of CIT(A) on this issue. This ground is rejected. 291. Ground No. 38 is as under: 38. On the facts an .....

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ns. We find that identical issue was raised by Revenue as per ground No. 18(a) & (b) in assessment year 91-92 in I.T.A. No. 537 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 66 to 68 of the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could not point out any difference in facts in the present year, we do not find any reason to take a contrary view in this year. Accordingly, respectfully following the e .....

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he assessee supported the order of learned CIT(A). 296. We have considered the rival submissions. We find that identical issue was raised by Revenue as per ground No. 18(b) in assessment year 91-92 in I.T.A. No. 537 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 69 to 71 of the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could not point out any difference in facts in the present year, we do not find any re .....

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supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 299. We have considered the rival submissions. We find that this issue is covered in favour of the assessee by the judgment of Hon ble Gujarat High Court rendered in the case of Sayaji Iron and Engg. Co. vs. CIT [2002] 253 ITR 749 (Guj) where it is held that even if there is personal use of telephone and vehicles etc. by the Directors / employees of the company, the same can be included in .....

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roperly vouched as well as no proper details were furnished in spite of specific opportunity given. 301. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 302. We have considered the rival submissions. We find that a clear finding has been given by learned CIT(A) that the Assessing Officer has failed to point out even a single instance of unvouched expenses or absence of details. This finding of CIT(A) could not .....

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ious year relevant to the assessment year under consideration which resulted under valuation of stock in trade to the tune of ₹ 1,95,51,000/-. 304. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 305. We have considered the rival submissions. We find that it is observed by learned CIT(A) on page No. 54 of his order that the assessee company was compelled to change its method of valuation of stock with a .....

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e case of the Revenue that the change in method of valuation of closing stock has not been consistently followed by the assessee after this year and therefore, in our considered opinion, no interference is called for in the order of CIT(A). This ground is rejected. 306. In the result, the appeal of the Revenue stands partly allowed. 307. Now we take up the appeal of the Revenue i.e. I.T.A. No.633/Lkw/2010 for the assessment year 1997-98. 308. Ground No. 1 is as under: 1. On the facts and in the .....

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5 in assessment year 91-92 in I.T.A. No. 537 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 27 to 29 of the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could not point out any difference in facts in the present year, we do not find any reason to take a contrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This groun .....

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in I.T.A. No. 537 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 72 to 74 of the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could not point out any difference in facts in the present year, we do not find any reason to take a contrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 314. Ground N .....

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ibunal decision in assessee s own case for assessment year 93-94, copy available on pages 236 & 237 of the paper book. 316. We have considered the rival submissions. We find that the issue in dispute is covered in favour of the assessee by the Tribunal decision in assessee s own case for assessment year 93-94. Learned DR of the revenue could not point out any difference in facts and therefore, we do not find any reason to take a contrary view in the present year. This ground is rejected. 317 .....

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see supported the order of learned CIT(A). 319. We have considered the rival submissions. We find that identical issue was raised by Revenue as per ground No. 28 in assessment year 91-92 in I.T.A. No. 537 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 106 to 114 of the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could not point out any difference in facts in the present year, we do not find any reason to t .....

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Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 322. We have considered the rival submissions. We find that identical issue was raised by Revenue as per ground No. 20 in assessment year 91-92 in I.T.A. No. 537 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 75 to 77 of the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could .....

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ish that all the expenses were revenue in nature and wholly and exclusively related to the business. 324. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 325. We have considered the rival submissions. We find that identical issue was raised by Revenue as per ground No. 17 in assessment year 91-92 in I.T.A. No. 537 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as pe .....

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ition of ₹ 2,01,027/-on account of Gardening charges ignoring the fact that the expenses were not properly verifiable, even though the assessee failed to furnish the proper vouchers for verification in spite of specific opportunity was given. 327. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A).n He also submitted that the issue in dispute is covered in favour of the assessee by the order of the Tribunal .....

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8. On the facts and circumstances of the case the ld. CIT (A) has erred in restricting the disallowance up to the extent 50% on account of expenses on Kamla Retreat ignoring that these expenses are hit by section 37(4) and 37(5) of the Act. 330. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 331. We have considered the rival submissions. We find that identical issue was raised by Revenue as per ground No. 29 .....

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d is rejected. 332. Ground No. 9 is as under: 9. On the facts and in the circumstances of the case the Ld. CIT (A) has erred in deleting the addition of ₹ 4,26,466/- on account of guest house maintained in Kamla Castle at Mussorie even though no details of the expenditure were produce before him and as such, the relief given is without basis. 333. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 334. We h .....

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ully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 335. Ground No. 10 is as under: 10. On the facts and circumstances of the case, the learned CIT(A) has erred in restricting the disallowance up to the extent of 50% on account of expenses on Kamla Retreat ignoring that these expenses are hit by section 37(4) and 37(5) of the Act. 336. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assess .....

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ake a contrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 338. Ground No. 11 is as under: 11. On the facts and circumstances of the case, the learned CIT(A) has erred in deleting the addition of ₹ 4,26,466/- on account of guest house maintained in Kamla Castle at Mussorie even though no details of the expenditure were produced before him and as such the relief given is with .....

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e Revenue could not point out any difference in facts in the present year, we do not find any reason to take a contrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 341. Ground No. 12 is as under: 12. On the facts and in the circumstances of the case the Ld. CIT (A) has erred in allowing relief of ₹ 8,34,795/-being the disallowance on account of proportionate interest on the .....

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issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 5 to 7 of the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could not point out any difference in facts in the present year, we do not find any reason to take a contrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 344. Ground No. 13 is as under: 13. On t .....

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essment year 91-92 in I.T.A. No. 537 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 100 to 102 of the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could not point out any difference in facts in the present year, we do not find any reason to take a contrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is re .....

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find that identical issue was raised by Revenue as per ground No. 8 in assessment year 91-92 in I.T.A. No. 537 and the issue was decided by the Tribunal partly in favour of the assessee as per Para 36 to 38 of the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could not point out any difference in facts in the present year, we do not find any reason to take a contrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground .....

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, presentation of articles. Guest house expense and expenses of capital nature as well as the assessee failed to furnish head wise bifurcation of expenses in spite of specific opportunity given. 351. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 352. We have considered the rival submissions. We find that identical issue was raised by Revenue as per ground No. 24(a) to 24(c) in assessment year 91-92 in I.T.A. .....

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as under: 16. On the facts and in the circumstances of the case the Ld. CIT (A) has erred in deleting the addition of ₹ 2,38,268/- on account of concurrent auditors expenses ignoring the fact that the expenses included expenses on fooding, refreshment, railway fare, guest house etc. having the nature of entertainment and not connected to the business. 354. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). .....

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ny reason to take a contrary view in the present year. This ground is rejected. 356. Ground No. 17 is as under: 17. On the facts and circumstances of the case the Ld. CIT (A) has erred in deleting the disallowance up to 80% i. e. ₹ 1,20,94,226/- on account of sales promotion expenses even though the expenditure hit by section 37(2A) of the Act being entertainment and presentation/gift expenses. 357. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the asse .....

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ason to take a contrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 359. Ground No. 18 is as under: 18. On the facts and circumstances of the case the Ld. CIT (A) has erred in deleting the disallowance of ₹ 1,57,448/- under the head traveling out of pocket expenses even though these expenses related to guest house expenses and were of entertainment in nature and hit by secti .....

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l decision in assessee s own case for assessment year 93-94. Learned DR of the revenue could not point out any difference in facts and therefore, we do not find any reason to take a contrary view in the present year. This ground is rejected. 362. Ground No. 19 is as under: 19. On the facts and circumstances of the case the Ld. CIT (A) is not correct in allowing the prospecting expenditure u/s 35E. 363. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assesse .....

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ontrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 365. Ground No. 20 is as under: 20. On the facts and circumstances of the case the Ld. CIT(A) is not correct in allowing equity issue expenses u/s 35D. 366. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 367. We have considered the rival submi .....

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is decided against the assessee. This ground is allowed. 368. Ground No. 21 is as under: 21. On the facts and in the circumstances of the case the Ld. CIT (A) has erred in allowing relief of ₹ 6,80,000/- on account of office maintenance expenses ignoring the fact that these expenses were entertainment in nature and spent on food etc. as well as capital expenditure in nature. 369. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the o .....

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refore, we do not find any reason to take a contrary view in the present year. This ground is rejected. 371. Ground No. 22 is as under: 22. On the facts and in the circumstances of the case the Ld. CIT (A) has erred in allowing relief of ₹ 61,52,204/- on account of expenses on Architect award of the year ignoring the fact that the assessee company is not in actual construction business, as well as the assessee failed to establish clear nexus of expenditure with the business. 372. Learned D .....

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urred by the assessee company in respect of architect award of the year. In our considered opinion, even if the assessee is in the business of manufacturing of only one time of construction material i.e. cement, such an expense on account of architect award, can be very much for business purposes because it will help the assessee company to promote its cement business. This is also noted by learned CIT(A) that the similar claim was allowed in earlier assessment year i.e. 94-95 and also in later .....

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learned A.R. of the assessee supported the order of learned CIT(A). He also submitted that the issue in dispute is covered in favour of the assessee by the order of the Tribunal in assessee s own case for assessment year 95-96 as per Para 425 of the Tribunal order. 376. We have considered the rival submissions. We find that the issue in dispute is covered in favour of the assessee by the Tribunal decision in assessee s own case for assessment year 95-96. Learned DR of the revenue could not point .....

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rted the order of learned CIT(A). 379. We have considered the rival submissions. We find that the decision of CIT(A) is on the basis that the liability has crystallized during this year. This finding of CIT(A) could not be controverted by Learned D.R. of the Revenue and hence, we decline to interfere in the order of CIT(A). This ground is rejected. 380. Ground No. 25 is as under: 25. On the facts and in the circumstances of the case the Ld. CIT (A) has erred in deleting the addition of ₹ 1 .....

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vs. Sugauli Sugar Works (P) Ltd. 236 ITR 518. This is not the case of the Revenue that the liability is not appearing in the balance sheet. The only objection of the Assessing Officer is that the liability is more than three years old. Hence, under these facts, the disputed issue is covered in favour of the assessee by the judgment of Hon ble Apex Court followed by learned CIT(A). We, therefore, decline to interfere in the order of learned CIT(A). This ground is rejected. 383. Ground No. 26 is a .....

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ute is covered in favour of the assessee by the order of the Tribunal in assessee s own case for assessment year 95-96 as per Para 405 of the Tribunal order. 385. We have considered the rival submissions. We find that the issue in dispute is covered in favour of the assessee by the Tribunal decision in assessee s own case for assessment year 95-96. Learned DR of the revenue could not point out any difference in facts and therefore, we do not find any reason to take a contrary view in the present .....

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by learned CIT(A) that the Assessing Officer has made disallowance out of depreciation on the basis that out of repairs to plant & machinery, 10% of material cost of spares is to be considered as scrap value and the same should be reduced from the WDV of the plant & machinery and consequently, the depreciation is to be reduced to that extent. In our considered opinion, unless this is brought on record by the Revenue that there is any scrap value realized or is relalizable on account of .....

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r together with the amount of scrap value, if any, subject to this that such deduction is not exceeding the WDV. In the present case, the scrap value sought to be reduced by the Assessing Officer is not on account of assets being sold or discarded or demolished or disturbed. In the present case, the asset is put to repair and the material used for repair of plant & machinery cannot be said to be the scrap value on account of sale or discarding or demolishing or disturbing of the asset in que .....

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ng it as Plant & Machinery instead of part of roads. 389. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 390. We have considered the rival submissions. We find that identical issue was raised by Revenue as per ground No. 30(c) in assessment year 91-92 in I.T.A. No. 537 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 121 to 123 of the Tribunal decisio .....

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count of depreciation on, repairs to plant & machinery treated as capital in earlier years ignoring the fact that the assessee disputed the issue of repairs to plant & machinery treated as capital in earlier years before various courts. 392. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 393. We have considered the rival submissions. We find that this issue is inter-connected with the issue raised by .....

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s raised by Revenue as per ground No. 30(a) & 30(b) in assessment year 91-92 in I.T.A. No. 537 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 118 to 120 of the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could not point out any difference in facts in the present year, we do not find any reason to take a contrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this .....

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ned CIT(A). 398. We have considered the rival submissions. We find that identical issue was raised by Revenue as per ground No. 21 in assessment year 91-92 in I.T.A. No. 537 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 78 to 80 of the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could not point out any difference in facts in the present year, we do not find any reason to take a contrary view in this year. .....

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as learned A.R. of the assessee supported the order of learned CIT(A). He also submitted that the issue in dispute is covered in favour of the assessee by the order of the Tribunal in assessee s own case for assessment year 95-96 as per Para 432 and 433 of the Tribunal order. 401. We have considered the rival submissions. We find that the issue in dispute is covered in favour of the assessee by the Tribunal decision in assessee s own case for assessment year 95-96. Learned DR of the revenue coul .....

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considered the rival submissions. We find that identical issue was raised by Revenue as per ground No. 22 in assessment year 91-92 in I.T.A. No. 537 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 81 to 83 of the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could not point out any difference in facts in the present year, we do not find any reason to take a contrary view in this year. Accordingly, respectfull .....

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nd not verifiable with vouchers. 406. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 407. We have considered the rival submissions. We find that identical issue was raised by Revenue as per ground No. 10 in assessment year 91-92 in I.T.A. No. 537 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 42 to 44 of the Tribunal decision in assessment year 91-92. S .....

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enses even though these expenses were of capital in nature as well as1 expenses related to earlier years, no details7in-complete details furnished, not related to business and not verifiable with vouchers. 409. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 410. We have considered the rival submissions. We find that identical issue was raised by Revenue as per ground No. 11 in assessment year 91-92 in I.T.A. .....

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s under: 33. On the facts and in the circumstances of the case the Ld. CIT (A) has erred in deleting the disallowance of ₹ 27,23,690/- on account of .sales promotion incentive even though the expenses were not relating to the sale made during the year under consideration. 412. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). He also submitted that the issue in dispute is covered in favour of the assessee .....

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4. Ground No. 34 is as under: 34. On the facts and circumstances of the case the Ld. CIT (A) has erred allowing relief of ₹ 9,54,454/- on account of Product development expenses ignoring that these expenses were in the nature of entertainment as well as spent on gifts and presentation and hit by section 37(2A) of the Act. 415. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 416. We have considered the ri .....

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following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 417. Ground No. 35 is as under: 35. On the facts and in the circumstances of the case the Ld. CIT (A) has erred in deleting the addition of ₹ 25,64,629/- on account of articles/gift intended for presentation even though the expenditure hit by section 37(2A) of the Act. 418. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee support .....

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rary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 420. Ground No. 36 is as under: 36. On the facts and in the circumstances of the case the Ld. CIT (A) has erred in deleting the addition of ₹ 38,39,395/- on account of telephone expenses ignoring the personal use of telephones by officials. 421. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of .....

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yee but the disallowance cannot be made in the hands of the assessee company. We decline to interfere in the order of CIT(A). This ground is rejected. 423. Ground No. 37 is as under: 37. On the facts and in the circumstances of the case the Ld. CIT (A) has erred in deleting the disallowance of ₹ 1,08,078/- on account of repairs to other assets expenses, ignoring the fact that these expenses were not properly vouched as well as no proper details were furnished in spite of specific opportuni .....

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assessee s own case for assessment year 93-94. Learned DR of the revenue could not point out any difference in facts and therefore, we do not find any reason to take a contrary view in the present year. This ground is rejected. 426. In the result, this appeal of the Revenue is partly allowed. 427. Now we take up the Revenue s appeal i.e. I.T.A. No.714/Lkw/2010 for assessment year 1999-2000. 428. Ground No. 1 is as under: 1. On the facts and in the circumstances of the case the Ld. CIT(A) has er .....

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65 of the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could not point out any difference in facts in the present year, we do not find any reason to take a contrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 431. Ground No. 2 is as under: 2. On the facts and in the circumstances of the case the Ld. CIT(A) has erred in deleting the Gardening charge .....

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spute is covered in favour of the assessee by the Tribunal decision in assessee s own case for assessment year 93-94. Learned DR of the revenue could not point out any difference in facts and therefore, we do not find any reason to take a contrary view in the present year. This ground is rejected. 434. Ground No. 3 is as under: 3. On the facts and in the circumstances of the case the Ld. CIT(A) has erred in deleting the disallowance of ₹ 8,98,782/- on account of Articles intended for prese .....

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the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could not point out any difference in facts in the present year, we do not find any reason to take a contrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 437. Ground No. 4 is as under: 4. On the facts and in the circumstances of the case the Ld. CIT(A) has erred in allowing relief of ₹ 50,31,98 .....

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in favour of the assessee and against the Revenue as per Para 39 to 41 of the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could not point out any difference in facts in the present year, we do not find any reason to take a contrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 440. Ground No. 5 is as under: 5. On the facts and in the circumstances o .....

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the rival submissions. We find that identical issue was raised by Revenue as per ground No. 2 in assessment year 91-92 in I.T.A. No. 537 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 5 to 7 of the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could not point out any difference in facts in the present year, we do not find any reason to take a contrary view in this year. Accordingly, respectfully following th .....

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ed the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 445. We have considered the rival submissions. We find that identical issue was raised by Revenue as per ground No. 23 in assessment year 91-92 in I.T.A. No. 537 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 84 to 86 of the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could not point out any difference in fa .....

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d D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 448. We have considered the rival submissions. We find that identical issue was raised by Revenue as per ground No. 26 in assessment year 91-92 in I.T.A. No. 537 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 100 to 102 of the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could not .....

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arned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 451. We have considered the rival submissions. We find that identical issue was raised by Revenue as per ground No. 8 in assessment year 91-92 in I.T.A. No. 537 and the issue was decided by the Tribunal partly in favour of the assessee as per Para 36 to 38 of the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could not point out any d .....

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ed in deleting the disallowance of ₹ 73,66,308/- on account of employees welfare expenses even though no details of expenses were filed as well as these expenses were not meant wholly and exclusively for business purposes. 453. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 454. We have considered the rival submissions. We find that identical issue was raised by Revenue as per ground No. 24(a) to 24(d) .....

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s rejected. 455. Ground No. 10 is as under: 10. On the facts and circumstances of the case the Ld. CIT(A) has erred in deleting the disallowance up to 80% i.e. ₹ 65,64,426/- on account of sales promotion expenses even though the expenditure hit by section 37(2A) of the Act being entertainment and presentation/gift expenses. 456. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 457. We have considered the .....

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lowing the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 458. Ground No. 11 is as under: 11. On the facts and in the circumstances of the case the Ld. CIT(A) has erred in deleting the disallowance of ₹ 35,000/- on account of traveling expenses ignoring the fact that these expenses were not connected with business. 459. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order o .....

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, we do not find any reason to take a contrary view in the present year. This ground is rejected. 461. Ground No. 12 is as under: 12. On the facts and in the circumstances of the case the Ld. CIT(A) is not correct in allowing the prospecting expenditure under section 35E. 462. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 463. We have considered the rival submissions. We find that identical issue was raised .....

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f the assessee. This ground is rejected. 464. Ground No. 13 is as under: 13. On the facts and circumstances of the case the Ld. CIT(A) is not allowing equity issue expenses u/s 35D. 465. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 466. We have considered the rival submissions. We find that identical issue was raised by Revenue as per ground No. 4 in assessment year 90-91 in I.T.A. No. 486 and the issue was .....

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and in the circumstances of the case the Ld. CIT(A) has erred in allowing the relief of ₹ 6,80,000/-on account of office maintenance expenditure ignoring that these expenses seemingly of capital nature. 468. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). He also submitted that the issue in dispute is covered in favour of the assessee by the order of the Tribunal in assessee s own case for assessment ye .....

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ces of the case the Ld. CIT(A) has erred in allowing relief of ₹ 16,65,633/- on account of expenses on Architect award of the year ignoring the fact that the assessee company is not in actual construction business, as well as the assessee failed to establish clear nexus of expenditure with the business. 471. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 472. We have considered the rival submissions. We .....

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f construction materials i.e. cement, such an expense on account of architect award, can be very much for business purposes because it will help the assessee company to promote its cement business. This is also noted by learned CIT(A) that the similar claim was allowed in earlier assessment year i.e. 94-95 and also in later year i.e. assessment year 2004-05. Hence, we decline to interfere in the order of CIT(A) on this issue. This ground is rejected. 473. Ground No. 16 is as under: 16. On the fa .....

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al in assessee s own case for assessment year 95-96 as per Para 425 of the Tribunal order. 475. We have considered the rival submissions. We find that the issue in dispute is covered in favour of the assessee by the Tribunal decision in assessee s own case for assessment year 95-96. Learned DR of the revenue could not point out any difference in facts and therefore, we do not find any reason to take a contrary view in the present year. This ground is rejected. 476. Ground No. 17 is as under: 17. .....

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ned CIT(A) has deleted this addition by following the judgment of Hon ble Apex Court rendered in the case of CIT vs. Sugauli Sugar Works (P) Ltd. 236 ITR 518. This is not the case of the Revenue that the liability is not appearing in the balance sheet. The only objection of the Assessing Officer is that the liability is more than three years old. Hence, under these facts, the disputed issue is covered in favour of the assessee by the judgment of Hon ble Apex Court followed by learned CIT(A). We, .....

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reas learned A.R. of the assessee supported the order of learned CIT(A). He also submitted that the issue in dispute is covered in favour of the assessee by the order of the Tribunal in assessee s own case for assessment year 95-96 as per Para 405 of the Tribunal order. 481. We have considered the rival submissions. We find that the issue in dispute is covered in favour of the assessee by the Tribunal decision in assessee s own case for assessment year 95-96. Learned DR of the revenue could not .....

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Cost of repairs and WDV was reduced. 483. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 484. We have considered the rival submissions. We find that it is noted by learned CIT(A) that the Assessing Officer has made disallowance out of depreciation on the basis that out of repairs to plant & machinery, 10% of material cost of spares is to be considered as scrap value and the same should be reduced from th .....

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s per clause (c) of sub section (6) of section 43, deduction has to be made from opening WDV on account of sums payable in respect of any asset falling within that block which is sold or discarded or demolished or disturbed, during that previous year together with the amount of scrap value, if any, subject to this that such deduction is not exceeding the WDV. In the present case, the scrap value sought to be reduced by the Assessing Officer is not on account of assets being sold or discarded or .....

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he circumstances of the case the Ld. CIT(A) has erred in allowing 100% depreciation on Machinery for energy saving while such machinery was not directly covered by this type of Plant & Machinery as mentioned in I. T. Rules be calculated treating it as Plant & Machinery instead of part of roads. 486. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 487. We have considered the rival submissions. We find t .....

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ion, this ground is decided in favour of the assessee. This ground is rejected. 488. Ground No. 19(c) is as under: 19(c) On the facts and in the circumstances of the case the Ld. CIT(A) has erred in deleting the addition of ₹ 52,209/- on account of depreciation on repairs to plant & machinery treated as capital in earlier years ignoring the fact that the assessee disputed the issue of repairs to plant & machinery treated as capital in earlier years before various courts. 489. Learn .....

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allowance of ₹ 1,24,576/- on account of depreciation on amount of Foreign exchange rate fluctuation even though the claim was hit by provisions of section 43A. 492. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 493. We have considered the rival submissions. We find that identical issue was raised by Revenue as per ground No. 30(a) & 30(b) in assessment year 91-92 in I.T.A. No. 537 and the issue was .....

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ts and in the circumstances of the case the Ld. CIT(A) has erred in deleting the disallowance of ₹ 70,63,503/- on account of Repairs to Plant & Machinery expenses even though the assessee could not prove that all items charged under this head were routed through stores in spite of specific opportunity given. 495. Learned D.R. of the Revenue supported the assessment order whereas learned A.R. of the assessee supported the order of learned CIT(A). 496. We have considered the rival submis .....

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bunal decision, this ground is decided in favour of the assessee. This ground is rejected. 497. Ground No. 21 is as under: 21. On the facts and in the circumstances of the case the Ld. CIT(A) has erred in deleting the disallowance of ₹ 86,75,526/- on account of repairs to building expenses, even though the assessee could not prove that all items charged under this head were routed through stores in spite of specific opportunity given 498. Learned D.R. of the Revenue supported the assessmen .....

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nt year, we do not find any reason to take a contrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 500. Ground No. 22 is as under: 22. On the facts and in the circumstances of the case the Ld. CIT(A) has erred in deleting the disallowance of ₹ 7,000/- on account of Sports Promotion expenses, even though the assessee could not prove that these expenses were incurred for the bu .....

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Revenue that the order of CIT(A) was reversed by the Tribunal in any of those years. No difference in facts could be pointed out by Learned D.R. of the Revenue. We, therefore, decline to interfere in the order of CIT(A) on this issue. This ground is rejected. 503. Ground No. 23 is as under: 23. On the facts and in the circumstances of the case the Ld. CIT(A) has erred in deleting the disallowance of ₹ 16,29,022/- on account of telephone expenses, ignoring that the assessee could not prove .....

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53 ITR 749 (Guj) where it is held that even if there is personal use of telephone and vehicles etc. by the Directors / employees of the company, the same can be included in the perquisites value of the concerned Director/ employee but the disallowance cannot be made in the hands of the assessee company. We decline to interfere in the order of CIT(A). This ground is rejected. 506. Ground No. 24 is as under: 24. On the facts and in the circumstances of the case the Ld. CIT(A) has erred in deleting .....

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We have considered the rival submissions. We find that the issue in dispute is covered in favour of the assessee by the Tribunal decision in assessee s own case for assessment year 93-94. Learned DR of the revenue could not point out any difference in facts and therefore, we do not find any reason to take a contrary view in the present year. This ground is rejected. 509. Ground No. 25 is as under: 25 On the facts and in the circumstances of the case the Ld. CIT(A) has erred in allowing relief o .....

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was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 106 to 114 of the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could not point out any difference in facts in the present year, we do not find any reason to take a contrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 512. Ground No. 26 is as under: 26. On the .....

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90-91 in I.T.A. No. 486 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 37 to 39 of the Tribunal decision in assessment year 90-91. Since Learned D.R. of the Revenue could not point out any difference in facts in the present year, we do not find any reason to take a contrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 515. Gr .....

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bmissions. We find that identical issue was raised by Revenue as per ground No. 6 in assessment year 91-92 in I.T.A. No. 537 and the issue was decided by the Tribunal in favour of the assessee and against the Revenue as per Para 30 to 32 of the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could not point out any difference in facts in the present year, we do not find any reason to take a contrary view in this year. Accordingly, respectfully following the earlier .....

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rder of learned CIT(A). Learned A.R. of the assessee fairly conceded that the present issue is covered against the assessee by the Tribunal order in assessment year 94-95 as per Para 362 of that Tribunal order. Respectfully following this Tribunal order for assessment year 94-95, we reverse the order of learned CIT(A) and restore that of the Assessing Officer. This ground of Revenue is allowed. 520. Ground No. 29 is as under: 29. On the facts and in the circumstances of the case the Ld-CIT(A) ha .....

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ur of the assessee and against the Revenue as per Para 48 to 50 of the Tribunal decision in assessment year 91-92. Since Learned D.R. of the Revenue could not point out any difference in facts in the present year, we do not find any reason to take a contrary view in this year. Accordingly, respectfully following the earlier Tribunal decision, this ground is decided in favour of the assessee. This ground is rejected. 523. Ground No. 30 is as under: 30. On the facts and in the circumstances of the .....

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