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TMI Blog2017 (6) TMI 1254X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 2010-11 passed U/s.250(6) r.w.s. 143(3) of the Act. 2. There is a delay of 3 days in filing the appeal by the Revenue. The Ld.DCIT has furnished an affidavit before us stating that the delay was due to the misplacement of file and due to the time taken for tracing the file. The Ld.DR pleaded that the short delay in filing the appeal may be condoned. The Ld.AR objected to the submission of the Ld.DR. After hearing both sides, we are of the considered view that the short delay in filing the appeal by the Revenue deserves to be condoned. Accordingly we hereby condone the delay of 3 days in filing the appeal by the Revenue and proceed to hear the case on merits. 3. The assessee has raised several grounds in its appeal, however the crux of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rein the Ld.AO had made several additions. 6. Assessee's Appeal, Ground No. 3(i) : Disallowance of the claim of expenditure of Rs. 19.20 crores :- During the course of assessment proceedings, it was noticed by the Ld.AO that the assessee had claimed Rs. 19,20,16,000/- as expenditure in Profit & Loss account for the relevant assessment year. On query, it was explained by the Ld.AR before the Ld.AO as follows:- "The assessee-company for the purpose of securing adequate irrigation facilities to its cane areas has created water users societies, viz., Sakthi Rural Development Water Users Society,Cuttack and Samthi Sugars Cane Growers Rural Development Water Users Society, Dhanakanal. Those societies have created irrigation facilities, viz., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the issue, the Ld.AO rejected the claim of expenditure of Rs. 19.2 crores because of the following reasons:- 1) The assessee is not in the business of providing bank guarantee and it was only in the business of manufacturing sugar, industrial alcohol, generation of power and manufacturing soya products. 2) The relationship between the assessee and the farmers are only for purchase of raw materials. 3) The societies for whom the assessee had given bank guarantee are independent organizations providing support to the farmers. 4) Providing infrastructure facilities to the farmers is a benefit provided to the farmers and not linked to the business of the assessee. 5) The assessee is entitled to claim, the amount paid by it to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, there is a direct business nexus on the transaction. Hence, it was pleaded that the loss suffered by the assessee may be allowed as deduction U/s.37 of the Act. The Ld.DR on the other hand, relied on the orders of the Revenue authorities and argued in support of the same. 6.4 We have heard the rival submissions and carefully perused the materials on record. From the order of the Ld.AO and the Ld.CIT(A), the entire facts of the case are not clear. The assessee has also not produced before us any documents such as the agreement between the assessee and the societies, the resolution passed by the society in its general meeting, the nature of work executed by the society, the reasons for the loss incurred by the society, the reasons for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the income of the assessee. 8.1 On appeal, the Ld.CIT(A) following the decision of the Chennai Bench of the Tribunal for the assessment year 2008-09 in ITA No.614/Mds/2012 and 867/Mds/2012 dated 30.01.2015, allowed the appeal of the assessee in its favour. 8.2 Since, the Ld.CIT(A) has only followed the order of the Chennai Bench of the Tribunal on this issue, we do not find it necessary to interfere with his order. Accordingly this ground raised by the Revenue is decided against it. 9. Revenue's Appeal, Ground No. 4(ii) : Assessment of rental income of Rs. 46.76 lakh under the head 'business income':- It was observed by the Ld.AO that the assessee had a rental income of Rs. 73,80,239/- which was disclosed by the assessee under the head ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is considered that what applies to buildings applies also to the fans, airconditioners and refrigerators fitted to those buildings, as those are amenities which virtually form part of such buildings. 3. On reconsideration therefore the Board have decided, in supersession of the instructions issued in their letter dt. the 29th Feb., 1964, that fans, air-conditioners, refrigerators etc. provided by the employer at the residence of the employees should be considered to have been used wholly for the purpose of the employer's business and full depreciation as may be admissible in accordance with the rules, should be allowed in the assessment of the employer. Where such assets have been installed on or before the 31st March, 1965, developm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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