TMI Blog2010 (12) TMI 1305X X X X Extracts X X X X X X X X Extracts X X X X ..... earing, the ld. Counsel for the assessee Shri M.C. Mehta along with Shri Hitesh Chimnani contended that the details of the impugned amount are available at page 8 of the paper book. It was submitted that the amount of ₹ 67,208/- relates to M/s. Relogidtics Transport where the assessee company sold goods (DOC). Out of the sale of such goods, the goods worth ₹ 1,18,792/- were rejected by the customers of the said company and ultimately, these goods were sold by the assessee and claim payable to the said party was settled for ₹ 67,208/ during the current year, for which, our attention was invited to page 9 to 19 of the paper book. For the amount of ₹ 2,485/-, it was claimed that it relates to M/s. Orient Road Transport ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8.6.05 31.7.05 148 Orient Road Transport Freight Outward 2485 2004-05 Party Bill Date 26.5.05 1.8.05 165 Subhash Transport Freight Outward 710 2004-05 Party Letter Date 9.8.2005 28.2.06 1886 Cargil India Pvt. Ltd. Freight 283091 2004-05 TOTAL 353494 The assertion of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the year 1995 (page 73 of paper book) to avail the benefit of sales-tax exemption, on the basis of non-conventional power generation unit to be set up by the said Girdharilal Sugar Allied Industry Ltd. [vide notification no.A-3-32- 94-ST-v(5)dated 28.2.95]. The said exemption was granted to M/s. Premier Industries (India) Ltd. to the tune of ₹ 125.30 lacs and to M/s. Premier Nutritions, Indore (a division of M/s. Premier Industries (India) Ltd.) to the tune of ₹ 98 lacs. The relevant record is available on pages 35 to 40 of the paper book and notes on accounts pages 77 and 94-95 of the paper book. Due to continue losses incurred by the said sugar factory, the value of the shares of the said company was revalued at ₹ 8,8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12.11.2009, had deleted the similar disallowance, though the quantum as disallowance was very less. However, in that year, the fact of commercial consideration had been accepted. The Learned counsel further contended that in the assessee s case for assessment year 1994-95 in I.T.A.No. 1060/Ind/1997 order Dated 15.3.2010, advance given by the assessee to its holding company was also found to have been transacted out of commercial consideration. Thereafter, the Learned counsel drew our attention to note no. 5 at page 23 of the compilation comprising of notes of account, wherein it had been stated that the assessee company for making investment in M/s. Narmada Sugar Limited had availed sales tax exemption as per the scheme of the M.P. State G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tifications issued by the State Government, it is clearly evident that the assessee company has derived the benefit under Sales Tax Deferred Scheme/Exemption Scheme on account of such investment in M/s. Narmada Sugars Limited, which has deployed these funds for generation of power. Thus, this fact alone is sufficient to not to make any disallowance. We are further of the view that the decision of the Hon'ble Karnataka High Court in the case of Sridevi Enterprises (supra) also supports the claim of the assessee as it is a case of continuation of opening balance wherein no disallowance has been made in the earlier two assessment years. Accordingly, we accept this claim of the assessee also. 15. In the result, the appeal filed by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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