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A.C.I.T. -4, Kanpur. Versus M/s J.K. Synthetics Ltd. and Vica-Versa

2015 (9) TMI 276 - ITAT LUCKNOW

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 record by the Revenue that there is any scr .....

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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 value on account of sale or discarding or .....

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999 (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 basis that the liability to pay sales prom .....

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d 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 perquisites value of the concerned Director/ .....

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t 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 consistently followed by the assessee af .....

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e. 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) that the similar claim was allowed in earl .....

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e 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 for the A.Y. 1991 - 92 as per Ground No .....

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est 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 heard to the assessee. Accordingly, ground .....

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ned 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 the rival submissions. We find that this .....

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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 year. 11. We find that in A.Y. 1991 - 92, t .....

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y 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 the expenses made out for Kamla Retreat .....

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#8377; 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 disallowance u/s 37(4)/37(5) of the Act .....

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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/94 dated 30/06/09 should be followed be .....

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at 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 under: On the facts and in the circumstance .....

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er 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 deleting the disallowance of ₹ 437, .....

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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 the extent of 30%. 18. Ground No. 4 (c) .....

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ed 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 circumstances of the case, the Ld CIT (A) has e .....

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ded 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 liabilities even though the purpose of t .....

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ara 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 assessee had not produced any details in .....

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ingly, 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 houses except for Kota Guest House. 31. It w .....

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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. 1987 - 88 as per Ground No. 46 and thi .....

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jected. 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 on 23.03.2015 and therefore, in the prese .....

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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 these appeal was heard on 01.05.2015 and .....

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eal 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 in that year. 44. We find that in A.Y. .....

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7; 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 that in A.Y. 1991 - 92, this issue was d .....

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eing 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 decided by the tribunal in favour of th .....

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gh 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 and against the revenue as per Para 71 .....

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d 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 any side and therefore, in the present y .....

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d 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 rejected. 60. Ground No. 14 of the Reve .....

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e 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 appeal is as under: On the facts and in the c .....

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y 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 energy conservation while such machinery was .....

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, 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 the disallowance of ₹ 9,34,605/- on .....

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ided 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/- on account of payment to concurrent a .....

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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 order of CIT(A) on this issue. Accordingl .....

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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 ground No. 18 is rejected. 78. Ground No .....

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al 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 point out any difference in facts and theref .....

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ugh 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 the revenue as per Para No. 14 of the t .....

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e 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 year also, this issue is decided on similar .....

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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 circumstances of the case, the Ld CIT (A) has err .....

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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 failed to prove the nexus of these expenses .....

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dingly, 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 covered in favour of the assessee by the .....

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ecision 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 (A) on this issue and restore this matter .....

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his 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 material available on record and gone through .....

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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 during the year under consideration. 103 .....

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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 the A.Y. 1991 - 92 as per Ground No. 11 a .....

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n 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 ground can be decided on similar line as p .....

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44/-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 Revenue as per Para 38 of the Tribunal o .....

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. 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 CIT (A) was reversed and that of the A.O. .....

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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 circumstances of the case, the Ld CIT (A) .....

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so 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 Allahabad High Court rendered in the case .....

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d 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 the present year, this ground can be de .....

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r: 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. 127. We find that in A.Y. 1991-92 in asses .....

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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. 1991-92 in assessee s own appeal, this .....

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rming 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 was decided by the tribunal in favour of .....

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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 the tribunal in favour of the assessee a .....

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lable 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 any reason to take a contrary view in the .....

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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 the tribunal against the assessee as per .....

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s 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 in favour of the assessee as per Para 1 .....

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f ₹ 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 issue was decided by the tribunal against .....

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ount 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/- as capital expenditure in A.Y. 1989 - 90 .....

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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 and therefore, in the present year, this .....

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ances 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 agreed by both sides that identical issue .....

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essment 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 facts of the case and judicial pronounceme .....

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ecision 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 case, the learned Commissioner of Income .....

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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. Accordingly, Ground No. 9 of the asses .....

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n 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 the assessee. This ground is allowed. 16 .....

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e 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 decided against the assessee. This ground is r .....

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e 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 not a contingent liability. Hence, we f .....

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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. Therefore, in line with the Tribunal order i .....

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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. Therefore, in line with the Tribunal or .....

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ments 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 assessee as per Para 147 of the tribunal o .....

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tical 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 with the Tribunal order in assessee s ow .....

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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 decision of the Tribunal in assessment year 91- .....

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. 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 1985-86 and 1993-94 and copies of these .....

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vour 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. of the assessee supported the order of le .....

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ut 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 maintenance expenses of guest house without a .....

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er 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 the Revenue and accordingly ground No. .....

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ssment 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 against the Revenue as per Para 75 - 77 .....

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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 submissions. We find that identical issue was rais .....

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(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 that this issue is covered in favour of th .....

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ry 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. It was agreed by both sides that this .....

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l 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 ₹ 1,07,09,244/-under the head traveling expenses e .....

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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 and circumstances of the case the Commissi .....

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ar 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 assessee and against the Revenue and according .....

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aised 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 circumstances of the case, the Commission .....

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ssue 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, Kanpur has erred in deleting the disallowanc .....

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ssessment 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 expenses were not incurred for non-business pur .....

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d 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 decided by the Tribunal as per Para 36 - 38 of .....

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rder 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 (Appeals)-l, Kanpur has erred in allowin .....

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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 Commissioner of Income Tax (Appeals)-l, Kanpur ha .....

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evenue 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 promotion expenses even though the expenditure .....

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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 the assessment order whereas learned A. .....

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ent 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 assessment year 1992-93 and as per Para 98 abov .....

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npur 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. This ground is allowed for statistical pu .....

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). 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, we do not find any reason to take a contr .....

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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 No. 24 is as under: 24. On the facts and .....

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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 not in actual construction business, as .....

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ing 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 materials i.e. cement, such an expense on ac .....

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f 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. 425 of that tribunal order. Hence, we fin .....

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d 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 in the order of learned CIT(A) on this i .....

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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 not find any reason to interfere in the or .....

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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 than three years old. Hence, under these .....

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h 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 contrary view in this year. Accordingly, this .....

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ssessment 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 consequently, the depreciation is to be reduced .....

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ng 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, the asset is put to repair and the mater .....

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)-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 No. 30 (c) and the relevant Para of that .....

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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. 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 earlier years ignoring the fact that the .....

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nce 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 of ₹ 2,95,716/- on account of depr .....

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on 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 submissions. We find that identical issue w .....

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d 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 A.R. of the assessee supported the order .....

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ing 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 against the Revenue as per Para 81 to 83 of .....

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eting 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 considered the rival submissions. We find tha .....

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is 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 related to business and not verifiable with v .....

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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 ₹ 51,51,330/- on account of sales p .....

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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 and circumstances of the case the Commissi .....

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sed 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 earlier Tribunal decision, this ground is .....

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ed 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 reason to take a contrary view in this yea .....

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earned 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 the perquisites value of the concerned D .....

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ails 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 be controverted by Learned D.R. of the .....

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r 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 view to comply with the requirement of t .....

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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 circumstances of the case the Ld. CIT(A) .....

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. 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 ground is rejected. 311. Ground No. 2 is as u .....

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ded 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 No. 3 is as under: 3. On the facts and in .....

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or 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. Ground No. 4 is as under: 4. On the fa .....

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). 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 take a contrary view in this year. Accord .....

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e 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 not point out any difference in facts i .....

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n 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 per Para 63 to 65 of the Tribunal decision .....

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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 in assessee s own case for assessment ye .....

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e 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 in assessment year 91-92 in I.T.A. No. .....

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nder: 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 have considered the rival submissions. We .....

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sion, 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 assessee supported the order of learned CIT(A) .....

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ingly, 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 without basis. 339. Learned D.R. of the Reve .....

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ence 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 interest free loans to M/s J. K. Satoh A .....

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vour 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 the facts and in the circumstances of the .....

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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 rejected. 347. Ground No. 14 is as under: .....

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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 is partly decided in favour of the asse .....

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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. No. 537 and the issue was decided by th .....

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rcumstances 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). He also submitted that the issue in disp .....

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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 assessee supported the order of learned CIT( .....

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r. 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 section 37(2A) of the Act. 360. Learned D.R. .....

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sessment 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 assessee supported the order of learned CIT(A). .....

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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 submissions. We find that identical issue was .....

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ound 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 order of learned CIT(A). He also submitte .....

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e 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.R. of the Revenue supported the assessm .....

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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 year i.e. assessment year 2004-05. Hence .....

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he 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 out any difference in facts and therefo .....

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e 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 ₹ 1,82,730/- on account of liabilities of m .....

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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 as under: 26. On the facts and in the cir .....

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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 year. This ground is rejected. 386. Gro .....

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ficer 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 sale of scrap, no such adjustment can be .....

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e, 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 question. Hence, in our considered opinion, .....

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f 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 decision in assessment year 90-91. Since Learne .....

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nt & 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 the Revenue in ground No. 27(a) and on t .....

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(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 ground is decided in favour of the asses .....

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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. Accordingly, respectfully following the .....

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d 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 could not point out any difference in facts .....

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d 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, respectfully following the earlier Tribunal decisio .....

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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). 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. Since Learned D.R. of the Revenue could n .....

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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. No. 537 and the issue was decided by the .....

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cumstances 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 by the order of the Tribunal in assessee .....

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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 rival submissions. We find that identical .....

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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 supported the order of learned CIT(A). 419. We .....

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pectfully 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 the assessee supported the order of lea .....

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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 opportunity given. 424. Learned D.R. of the Reven .....

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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 erred in holding that the Guarantee charge .....

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t 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 charges of ₹ 1,55,805/- even though thes .....

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ee 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 presentation ignoring the fact that these exp .....

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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 ₹ 50,31,983/- on account of traveling expenses wer .....

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e 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 of the case the Ld. CIT(A) has erred in a .....

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tical 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 the earlier Tribunal decision, this ground .....

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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 facts in the present year, we do not find .....

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ssment 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 point out any difference in facts in th .....

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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 difference in facts in the present year, .....

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7; 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) in assessment year 91-92 in I.T.A. No. 5 .....

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er: 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 rival submissions. We find that identica .....

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is 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 of learned CIT(A). He also submitted that .....

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ntrary 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 by Revenue as per ground No. 2 in assess .....

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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 decided by the Tribunal in favour of th .....

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e 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 year 93-94 as per Para 281 and 282 of the .....

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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 find that this is the only objection of .....

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ch 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 facts and in the circumstances of the case .....

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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. On the facts and in the circumstances o .....

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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, therefore, decline to interfere in the .....

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ted 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 point out any difference in facts and th .....

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3. 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 the WDV of the plant & machinery and c .....

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ection 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 .....

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(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 that identical issue was raised by Revenu .....

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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. Learned D.R. of the Revenue supported the ass .....

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nt 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 decided by the Tribunal in favour of th .....

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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 submissions. We find that identical issue was .....

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n 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 assessment order whereas learned A.R. of the asse .....

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ke 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 business purposes in spite of specific opp .....

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versed 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 that all expenses under this head were .....

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ven 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 the disallowance of ₹ 61,619/- on .....

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s. 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 of ₹ 29,12,808/- on account of gues .....

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f 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 facts and circumstances of the case the .....

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s 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. Ground No. 27 is as under: 27. On the fact .....

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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 Tribunal decision, this ground is decide .....

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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) has erred in allowing relief of ₹ 1, .....

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ue 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 case the Ld. CIT(A) has erred in holdin .....

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