TMI Blog2018 (3) TMI 1865X X X X Extracts X X X X X X X X Extracts X X X X ..... 2009-10 [ 2017 (4) TMI 405 - ITAT MUMBAI] where the matter has been remanded back by the Tribunal to the Ld. AO with certain directions. However, the Ld. AR made an attempt to distinguish the facts in the impugned AY by submitting that the assessee has written off the obsolete stock in the books, the complete details of which are available on record and therefore, the same is allowable to the assessee in terms of several judicial pronouncements. We find the matter to be inter-connected one. Therefore, with a view to maintain consistency in the treatment thereof, without delving much deeper into the issue, we deem it fit to restore the matter back to the file of Ld. AO on similar lines and adopt a consistent approach. Resultantly, this g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. Commissioner of Income-Tax (Appeals)- 21 [CIT(A)], Mumbai Appeal No.CIT(A)-10/ITO 5(1)(2)/78/2014-15 dated 29/02/2016. The assessment for impugned AY was framed by Ld. Income Tax Officer-5(1)(2) on 14/03/2014 u/s 143(3) of the Income Tax Act, 1961. The headings of effective grounds raised before us reads as under:- I. Disallowance of Corporate Social Responsibility expenses ( CSR ) : ₹ 27,00,000/- II. Addition of provision of slow moving / obsolete stock to the book profit of the Appellant while computing the tax liability under Section 115JB of the Act : ₹ 89,54,389/- III. Amortization / Depreciation claimed on Terminal Rights: ₹ 2,41,58,004/- 2. Facts leading to the same are that the assessee being resid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken by the Tribunal in assessee s own case for immediately preceding AY where the Tribunal, not convinced with assessee s explanation, upheld the stand of revenue in disallowing the expenditure incurred on corporate social responsibility. The relevant portion of the order is extracted below:- Similar view has been taken by Hon ble Bombay High Court in the case of Voltas Limited v. CIT (1994) 207 ITR 47 (Bom.). The onus lie on the assessee to prove with cogent material to have substantiated its claim that the said expenses is incurred wholly and exclusively for the purposes of business of the assessee as required u/s 37(1) of 1961 as some remote connection with business is not sufficient to claim the expenses as business expenses, whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... solete stock in the books, the complete details of which are available on record and therefore, the same is allowable to the assessee in terms of several judicial pronouncements. The Ld. AR also stressed the point that whatever treatment was given to the same, the same merely represented timing difference and was revenue neutral in nature and therefore, the same was allowable to the assessee. Upon due consideration, we find that exactly on similar facts in AY 2009-10, the matter has been remanded back by the Tribunal to the lower authorities with following directions:- 11. We have considered rival contentions and also perused the material available on record including the case laws. We have observed that the assessee company is engaged i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , no verification could be made by the authorities below to verify the contention of the assessee that it represented business loss arising on account of cost of obsolescence and loss on account of obsolete and slow moving inventory and it is an ascertained liability as claimed by the assessee, instead of merely being a provision or unascertained liability as contended by Revenue. Keeping in view specific provision in the Statute vide explanation 1(c) and (i) to Section 115JB of 1961 Act, the additions to book profit are required if the nature of said cost of obsolescence and loss on account of obsolete and slow moving inventory as debited in Profit and Loss Account is merely a provision or an unascertained liability for which onus is on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he treatment thereof, without delving much deeper into the issue, we deem it fit to restore the matter back to the file of Ld. AO on similar lines and adopt a consistent approach. Resultantly, this ground stands allowed for statistical purposes. 5. The last issue in assessee s appeal pertains to rate of depreciation on certain intangible assets acquired by the assessee. During assessment proceedings, it was noted that the assessee entered into 30 years license agreement with Jawaharlal Nehru Port Trust (JNPT) and paid certain upfront payment including stamp duty. These rights were categorized as Terminal Rights and amortized in the books of accounts over a period of 10 years effective from AY 2007-08. However, the assessee claimed deprec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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