TMI Blog2017 (5) TMI 1714X X X X Extracts X X X X X X X X Extracts X X X X ..... Act,1961 Claim of expenditure towards Corporate Social responsibility - HELD THAT:- Direct the Assessing Officer to examine the nature of the expenditure claimed in this year also and accordingly redetermine the allowability of such expenditure in accordance with law and in consonance with the observations of the Tribunal for earlier years. - ITA No. 148/Hyd/2017 - - - Dated:- 9-5-2017 - Smt. P. Madhavi Devi, Judicial Member And Shri B. Ramakotaiah, Accountant Member For Revenue : Smt. G. Aparna Rao, DR For Assessee : Shri Laxmi Niwas Sharma ORDER Per Smt. P. Madhavi Devi, J.M. This is Revenue s appeal for the A.Y 2012-13. In this appeal, the Revenue is aggrieved by the order of the CIT (A)-4 dated 21.11.2016. The Revenue has raised the following grounds of appeal: 1. The Ld. CIT(A), erred in deleting disallowance on account of mine closure obligation. 2. The Ld. CIT(A), erred in holding that mine closure obligation is an ascertained liability and allowable. 3. The Ld. CIT(A), erred in allowing the depreciation on lease hold land treating the same as intangible asset. 4. The Ld. CIT(A), erred in allowing the claim of expenditu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ground No.1 2 is concerned, we find that the Tribunal for the A.Y 2009-10 in ITA No.287/Hyd/2013 dated 18.7.2014 has considered this issue at length and has held as under: 19. The next effective ground of the assessee in this appeal relates to addition of ₹ 15,38,26,817 made by the Assessing Officer and sustained by the CIT(A) on account of mine closure obligation. 20. We heard both sides and perused the orders of the Revenue authorities on this issue and other material available on record. It has been brought to our notice by the learned counsel for the assessee, which has not been controverted by the learned Departmental Representative, that this issue is covered by the decisions of the Tribunal in assessee's own cases dated 28.2.2014 for assessment year 2008-09 in ITA No.714/Hyd/2012 and dated 9.5.2014 for assessment year 2010-11 in ITA No.1795/Hyd/2013. We find that the coordinate benches of this Tribunal, vide Paras 9 and 9.1 of its order dated 28.2.2014 for assessment year 2008-09, cited supra, decided the issue in the following manner: 9. We have heard the arguments of both the parties, perused the record and have gone through the orders of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... obligation works out to ₹ 4,98,058/- cannot be allowed. Further, mines at Kumaraswamy and Lalpur where there is no production, being so, no obligation is allowable. Further, assessee has not given year-wise break- up. Being so, the CIT(A) directed the AO to ascertain the account of year-wise mining, which has been done from the remaining mines and allow mine closure obligation to the extent mining done corresponding to the current year. He further gave a direction to the AO if the assessee fails to provide such data, then, pro rata h as to be applied. Thus, the CIT(A) has given a categorical finding in Paras 4.3 4.4 of his order. Therefore, we do not find any infirmity on that p art of the order and accordingly, we confirm the same. This ground raised by the assessee is dismissed . Following the above decision of the Tribunal dated 28.2.2014, coordinate bench of this Tribunal, vide Paras 47 and 48 of its order dated 9.5.2014 for the assessment year 2010-11 in ITA No.1795/Hyd/2013, though held that mine closure obligation is not a contingent liability, but an ascertained liability, restored the matter to the file of the Assessing Officer, for recomputing the disallowan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the learned Departmental Representative, that this issue is covered by the decisions of the Tribunal in assessee's own cases dated 28.2.2014 for assessment year 2008-09 in ITA No.714/Hyd/2012 and dated 9.5.2014 for assessment year 2010-11 in ITA No.1795/Hyd/2013. We find that the coordinate bench of this Tribunal, vide para 22 and 22.1 of its order of this Tribunal dated 28.2.2014 for assessment year 2008-09, cited supra, decided the issue in favour of the assessee in the following manner; 22. We have heard the arguments of both the parties and perused the record as well as gone through the orders of the M/s. National Mineral Development Corporation Limited, Hyderabad authorities below. Similar came up for consideration before the coordinate bench of ITAT, Cuttack in case East India Minerals Ltd. Vs. JCIT in ITA No. 224/CTK/2012, vide its order dated 25/06/2012, on which reliance placed by the assessee, wherein it has been held as follows: 7. We have heard the rival contentions of the parties and perused the material available on record. Considering the facts and circumstances of the case, we uphold the contention of the learned Counsel for the assessee for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atter, following the consistent view taken by the Tribunal in assessee's own cases for other years noted above, we delete the addition of ₹ 10,66,56,599 made by the Assessing Officer and sustained by the CIT(A), by disallowing the assessee's claim for depreciation on lease hold land. Assessee's grounds on this issue are accordingly allowed . 9. Thus, ground of appeal No.3 is rejected. 10. As regards Ground No.4, we find that this issue has also been considered in the assessee s own case for the A.Y 2009- 10 wherein and it was held as under: 26. The next effective grievance of the assessee in this appeal relates to addition of ₹ 33,30,05,797 made by the Assessing Officer and sustained by the CIT(A), by disallowance of assessee's claim for expenditure stated to have been incurred in discharge of corporate social responsibility. 27. We heard both sides and perused the orders of the Revenue authorities on this issue and other material available on record. It has been brought to our notice by the learned counsel for the assessee, which has not been not controverted by the learned Departmental Representative, that this issue is covered by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the villagers is very much required for conducting the business. More particularly, the cooperation of the people who are affected by the mining operation of the asses see is required. Merely because the hospital and medical college are situated 16 kms away from the unit, that will not deter the medical institution in giving treatment to the affected people. Moreover, admission was given to the children of the assessee's employees in the medical college. Therefore, indirectly the contribution made by the assessee takes care of the education of the employees' children. This would certainly be a welfare measure on the part of the asses see for carrying out the business in an effective and efficient manner. M/s. National Mineral Development Corporation Limited, Hyderabad Therefore, in our opinion, the contribution of ₹ 5,00,00,000 has to be treated as revenue expenditure for the purpose of the business. Therefore, we do not find any justification in disallowing the sum. Accordingly, we set aside the orders of the lower authorities and delete the entire addition. 36. Since the issue under consideration is identical to that of AY 2005-06, we delete the add ..... 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