TMI Blog2020 (3) TMI 1308X X X X Extracts X X X X X X X X Extracts X X X X ..... efits, LTC, baggage allowance etc. - HELD THAT:- As argued before us that the provision towards meeting definite liability to be discharged on a future date in respect of the present employees and the quantification of such liability on the basis of actuarial valuation and basing on the report is ascertained liability and not covered under explanation 1 (c) of second proviso to section 115 JB of the Act is further submitted that this issue has been covered by the addition of the Hon'ble Punjab and Haryana High Court for the Assessment Year 2002-03 in assessee's own case which has been followed consistently both by the Tribunal and the Ld. CIT(A) all through these years. There is no dispute that the decision of the Hon'ble Punjab and Haryana High Court for the Assessment Year: 2002-03 [ 2010 (10) TMI 1022 - ITAT DELHI ] in assessee's own case covers this issue and such view of the Hon'ble High Court has consistently been followed by the Tribunal and the Ld. CIT(A). Unless and until there is change of circumstances, is not possible to take a different view on an issue covered by the decision of the Hon'ble High Court and also the Tribunal for earlier years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Medicare Centre limited (supra). Addition on account of income tax on perquisite borne by the assessee in respect of accommodation provided to its employees while computing the book profit under section 115 JB - HELD THAT:- Considering the fact that under identical facts and circumstances the Tribunal had taken a view in favour of the Asst. Year: 2012-13 assessee in assessee's own case for the Assessment Year: 2010-11 and 2011-12 while following the decision of the Mumbai Tribunal in the case of Rashtriya Chemicals and Fertilisers limited [ 2018 (3) TMI 1564 - ITAT MUMBAI ] in the absence of any decision to the contrary by any higher forum, we hold the issue in favour of the assessee and direct the deletion of the addition made by the learned Assessing Officer on account of income tax on perquisite borne by the assessee in respect of accommodation provided to its employees while computing the book profit under section 115 JB of the Act. - ITA No.2786, 3121/Del/2016 - - - Dated:- 20-3-2020 - SHRI G.S. PANNU AND SHRI K. NARASIMHA CHARY, JJ. Appellant by: Sh. Nidhi Srivastava, CIT-DR Respondent by: Sh. Ved Jain, Adv. Sh. Himanshu Aggarwal, CA NARASIMHA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above mentioned deletions Revenue preferred ITA No.2786/Del/2016 whereas aggrieved by the additions are sustained, assessee preferred ITA No. 3121/Del/2016. Now we shall proceed to deal with these issues hereunder. 5. In respect of the disallowance under section 14A of the Act read with Rule 8D of the Rules, it could be seen that during the Financial Year relevant for the Assessment Year: 2012-13, the assessee had earned a total exempt income of ₹ 1 35, 43, 18, 540/- comprising of ₹ 1, 13, 40, 30, 550/- as income on tax free bonds and long-term advances and a sum of ₹ 22,02,88,000/-as a dividend income from investments. Assessee received tax-free Asst. Year: 2012-13 interest income on bonds/LTA which was in lieu of long wall drew receivables on account of sales made to the beneficiaries. 6. Learned Assessing Officer disallowed a sum of ₹ 33.46 crores by invoking section 14A of the Act read with Rule 8D of the Rules stating that such an amount of expenditure in the form of interest, establishment cost, Gen and administration expenses etc was bound to be incurred by the assessee to manage the investments and therefore, disallowed such sum as being non-b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with Rule 8D of the Rules and without having regard to the accounts of the assessee, learned Assessing Officer straightaway proceeded under section 14A of the Act read with Rule 8D of the Rules, without recording any reason for Asst. Year: 2012-13 not agreeing with the assessee not making any disallowance in this regard. 9. When the assessee received tax-free investment income on bonds/LTA which was in lieu of long overdue is receivable on account of sales made to the parties and pursuant to the drive-by trade agreement between the assessee, state electricity boards and reserve bank of India the assessee acquired the bonds to ensure timely payment of the warrant use and the investment in NHDC a subsidiary of the assessee, for out of the equity capital and internal accruals/equity/reserves the investment was made, it was necessary for the learned Assessing Officer to record as to why he reached a conclusion that the assessee must have incurred some expenditure that too having regard to the accounts of the assessee. Law laid down by the Hon'ble Delhi High Court on this aspect in the decisions relied upon by the assessee is clear that is only after arriving at the dissatisfacti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... argued before us that the provision towards meeting definite liability to be discharged on a future date in respect of the present employees and the quantification of such liability on the basis of actuarial valuation and basing on the report is ascertained liability and not covered under explanation 1 (c) of second proviso to section 115 JB of the Act is further submitted that this issue has been covered by the addition of the Hon'ble Punjab and Haryana High Court for the Assessment Year 2002-03 in assessee's own case which has been followed consistently both by the Tribunal and the Ld. CIT(A) all through these years. 15. There is no dispute that the decision of the Hon'ble Punjab and Haryana High Court for the Assessment Year: 2002-03 in assessee's own case covers this issue and such view of the Hon'ble High Court has consistently been followed by the Tribunal and the Ld. CIT(A). Unless and until there is change of circumstances, is not possible to take a different view on an issue covered by the decision of the Hon'ble High Court and also the Tribunal for earlier years. Asst. Year: 2012-13 Respectfully following the same we uphold the finding of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 3, 31, 92, 441/-on disallowance of direction under section 80 IA of the Act, which the assessing officer made on the ground that the assessee is eligible for deduction under section 80 IA of the Act only from adopted from generation and distribution of power and not from other income. 20. It could be seen from the record that the assessee company had climbed deduction under section 80 IA of the Act in respect of Uri Power Station Stage-1, Champera Power Station Stage-2 and Ranjit Power Station by submitting the copies of project wise Asst. Year: 2012-13 auditors certificate certifying the deduction under section 80 IA of the Act, but the AO held that the assessee is eligible for deduction under section 80 IA of the Act only from profit uptrend from the generation and distribution of power and not from other income. 21. A similar question had arisen in assessee's own case for the Assessment Year: 2010-11 and 2011-12 and by orders dated 8/5/2019 and 26/7/2019 for those years respectively the Tribunal had taken a view in favour of the assessee. Ld. CIT(A) followed the decision of the Tribunal and granted relief to the assessee. Assessee further places reliance on the addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st. Year: 2012-13 26. On this aspect, both the Ld. AR and the Ld. DR submitted that remanding the issue to the file of the learned Assessing Officer to follow the decision of the Hon'ble Noida Medicare Centre limited (supra) would meet the ends of Justice. Recording the same we set aside the finding of the Ld. CIT(A) on this issue and remit the same to the file of the assessing officer to take a view in the light of the decision of the Hon'ble Apex Court in the case of Noida Medicare Centre limited (supra). 27. The 3rd and last issue in the assessee's appeal relate to the addition of ₹ 3, 24, 551/-on account of income tax on perquisite borne by the assessee in respect of accommodation provided to its employees while computing the book profit under section 115 JB of the Act. At the outset, we Ld. AR submitted that this issue has clearly been covered by the decision of the Tribunal in assessee's own case for the Assessment Years: 2010-11 and 2011-12 besides being covered by the decision of the Mumbai Tribunal in the case of Rashtriya Chemicals and Fertilisers Ltd vs. CIT (2018) 91 taxman.com 104, in favour of the assessee. Ld. Counsel submitted that the de ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
