TMI Blog2018 (1) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... 0G. We considering the facts and submissions, set aside the orders of lower authorities and direct the Assessing Officer to allow deduction of ₹ 5.25 lakhs made under the head “donation and subscription” and allow this ground of appeal of the assessee. Addition on account of claim of 15% on loss on sale/discard of assets - CIT(A) directed the Assessing Officer to verify the correctness of assessee’s claim and given effect if any, as the issue is linked with the assessment year 1995-96 to 2008-09 - Held that:- We find no infirmity in the order of the CIT(A) as he has only directed the Assessing Officer to verify the correctness of assessee’s claim and give effect, if any. Hence, we dismiss this ground of the assessee. Short credit of TDS - Held that:- We do not find any flaw in the order of the CIT(A) as he has observed that the credit of TDS should have been allowed to the assessee on the basis of original TDS certificates submitted. Hence, we confirm the order of the CIT(A) on this issue. Depreciation on lease hold rights of coal bearing land u/s.32(1)(ii) being an intangible asset - Held that:- We find force in the submission of ld D.R. that the depreciation is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses and upheld the order of the CIT(A) for the reasons as discussed in paragraphs 21 and 22 of this order. Therefore, we uphold the impugned order of the ld CIT(A) on the issue of disallowance of prospecting boring expenses (P B) and dismiss the ground raised by the assessee in this regard. 5. Since there is no change of facts in the year under consideration, following the precedent, we confirm the order of the CIT(A) and dismiss Ground Nos.1 of appeal of the assessee and in respect of claim u/s.35E of the Act of earlier year addition being similar nature, we find that the assessee cannot ventilate its grievance before us and shall approach the respective assessing authorities and, therefore, we dismiss Ground No.12 of appeal of the assessee. 6. Ground No.2 of appeal relates to disallowance of Development expenditure of ₹ 49.32 lakhs. 7. The Assessing Officer found that the assessee has claimed ₹ 1244.27 lakhs under the head Development expenditure in the computation of income. Before the Assessing Officer, it was explained by the assessee that as per the accounting policy consistently followed, the development expenditure is treated as part of fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D.R. has objected that these documents were filed before the Tribunal for the first time, which are to be verified as there is effect of tax implication on the company. 16. We considering the submissions of both the parties and also the objection raised by ld D.R. find that the documents have to be verified in respect of land reclamation expenditure and in the interest of substantial justice, this issue is restored to the file of the Assessing Officer to verify and examine whether such provision was offered for taxation in the subsequent year and adjudicate the issue on merits after hearing the assessee. This ground is allowed for statistical purposes. 17. Ground No.5 of appeal relates to claim towards reversal of interest on income tax refund as expenditure. 18. This issue was not pressed by ld A.R. of the assessee and, therefore, same is dismissed as not pressed. 19. The next issue relates to confirmation of addition on account of donation and subscription . 20. The Assessing Officer found that the assessee has claimed ₹ 5.25 lakhs as donation subscription. The Assessing Officer required the assessee to furnish the details explanation with evidence of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnished any evidence before the Assessing Officer as called for. On appeal, the CIT(A) following the order of the Tribunal for the assessment years 1999-2000, 2000-2001, 2001-02 and 2002-03 has directed the Assessing Officer to allow such expenditure where the assessee has been able to establish relation over the expenditure of the assessee company. As regards to donation which are eligible for deduction u/s. 80G, the Assessing Officer shall allow the same on submission of the evidence of exemption u/s.80G. 25. We find that the assessee has paid an amount of 2.81 lakhs towards donations and ₹ 2.43.958 towards subscription to different concerns as mentioned in para 21 of this order. The major amounts are paid to Government institutions headed by Government officials like District Magistrate and other Government officials where the assessee company has major activefs business operations. As regards the subscriptions, the details furnished by the assessee are in the nature of annual membership, etc. The Tribunal in the assessment years 1999-2000, 2000-2001, 2001- 02 and 2002-03 has directed the Assessing Officer to allow such expenditure where the assessee has been able to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ire reconsideration in the light of technical support or evidence in the books of account. We, therefore, set aside the impugned order of the CIT(A) and restore the matter to the file of the Assessing Officer for consideration afresh in the light what has been stated above. 31. We find that the CIT(A) has directed the Assessing Officer to reconsider the issue on the above basis of above findings of the Tribunal. Hence, we confirm the order of the CIT(A) and dismiss this ground of appeal of the assessee. 32. The next issue relates to confirmation of addition of ₹ 130.09 lakhs on account of reduction in value of stores due to obsolescence and shortage of stores. 33. The brief facts of the case are that the Assessing Officer found that the assessee has provided an amount of ₹ 130.09 lakhs towards obsolescence of stores, which, as per the assessee, was arrived at after technical appraisal of stores articles which mainly pertains to spares store of those machineries and HEMM which has already been scrapped. The Assessing Officer disallowed on the ground that the assessee could not furnish the details as well as evidence thereof, which was confirmed in appeal by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allow the claim of the assessee. 38. On appeal, the CIT(A) directed the Assessing Officer to verify the correctness of assessee s claim and given effect if any, as the issue is linked with the assessment year 1995-96 to 2008-09. 39. We heard the rival submissions and perused the orders of lower authorities. We find no infirmity in the order of the CIT(A) as he has only directed the Assessing Officer to verify the correctness of assessee s claim and give effect, if any. Hence, we dismiss this ground of the assessee. 40. The next issue relates to short credit of TDS of ₹ 759.28 lakhs. 41. The Assessing Officer has not allowed any credit of TDS while processing the return u/s.143(1) of the Act. Before the Assessing Officer, it was submitted that the assessee has submitted all TDS certificates in original for the total TDS amount of ₹ 8467.70 lakhs. Further, the Assessing Officer vide is order u/s.154 has allowed credit of TDS for ₹ 4883.66 lakhs. 42. On appeal, the CIT(A) has held that the credit of TDS should have been allowed to the assessee on the basis of original TDS certificates submitted. 43. We do not find any flaw in the order of the CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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