TMI Blog2016 (7) TMI 1085X X X X Extracts X X X X X X X X Extracts X X X X ..... der passed by the ld. CIT and we quash the same. - Decided in favour of assessee. - ITA No. 1253 (Bang) 2015 - - - Dated:- 17-6-2016 - Shri A. K. Garodia, Accountant Member And Shri Vijay Pal Rao, Judicial Member For the Assessee : None present on behalf of assessee For the Revenue : Shri P. Chandrashekar, CIT ORDER Per Shri A. K. Garodia, AM This is assessee s appeal directed against the order of the ld. Prl. CIT-II, Belagavi, dated 27-03-2015 passed by him u/s 263 of the IT Act, 1961. 2. The assessee has raised the following grounds; 1. The impugned Order is illegal, improper, unjust much against all known canons of law. 2. The learned Commissioner of Income Tax has seriously erred in holding that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In this connection, the Appellant relies on the following decision which clearly holds that audit objection cannot be a subject matter for invoking the provisions of sec.263: Income Tax Appellate Tribunal, Delhi bench 'G', New Delhi between Satya Prakash Gupta Vs Assessee, vide ITA No.2730/De1/2013 dated 07/03/2014. A copy of the said Order is enclosed for ready reference. 3. This appeal is filed late by assessee and the delay is of 33 days. The assessee has moved an application for condonation of delay alongwith an affidavit of Mrs Mahadevi Kamble, President of the assessee society. It is submitted in the affidavit filed that because of the illness of the President of the assessee society, the appeal could not be filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roportion c) Process and place of purchase of raw-materials. d) Quality checks to recognize good quality rawmaterials to be procured by the MSPC members e) Storage instructions and place of storage. f) Seasonal var iat ions in pr ices of ingredients and how to benef i t by procuring during low price season. g) Personal hygiene to be taken care of by the members while processing energy food. h) Processing norms of each of the ingredients. Under this agreement, in the first 2 years, the MSPC will purchase readymade energy food from M/s Christy Fried Gram Industries and supply i t to the Anganwadies. From 3r d year onwards as provided in the Agreement, once the machinery is installed in the MSPCs, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s Christy - Fried Gram Industries brings an advantage of an enduring benefit to the assessee MSPC as the technical knowledge, to prepare energy food, training on how to handle machinery, training on the entire manufacturing process, in short how to produce the energy food and set up the MSPC is being given. With this capacity building exercise of M/s Christy Fried Gram Industries, the assessee MSPC will be enabled to manufacture and supply items to the ICDS projects and become independent. These expenses are not in the nature of running expenditure incurred in earning profit. By making payment to M/s Christy Fried Gram Industries a totally new asset in the form of a production unit is to come into existence. These are in the nature of pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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