9911796707
TMI Blog2019 (8) TMI 1767X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of assessee itself during AY 2008-09 and 2009-10 had allowed relief to the assessee and in this respect our attention was invited to copy of the Tribunal order dated 26/07/2016 placed at paper book page 17 to 32. It was further submitted that the appeal filed by the Revenue against the order of the Hon'ble Tribunal has been dismissed by Hon'ble Delhi High Court and our attention was invited to paper book page 5 to 16 where copy of order of the Hon'ble Delhi High Court was placed. The Ld. AR further invited our attention to paper book page 33 to 36 where the order of the Tribunal for AY 2010-11 in the case of assessee was placed and wherein, the Hon'ble Tribunal following the earlier orders in the case of assessee had dismissed the appeal of the Revenue. 3. The Ld. DR fairly agreed that the issue was covered in favour of the assessee but she placed reliance on the orders of the Assessing Officer. 4. We have heard rival parties and have gone through the material placed on record. We find that the ground of appeal taken by the Revenue in AY 2010-11 is similar to the ground of appeal taken in the present case. For the sake of completeness, grounds of appeal taken by the Revenue i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s should be claimed by assessee below the line and should not be charged to P&L A/c. Accordingly, the expenses of Rs. 4,28,22,481/- is disallowed and will be added in the income of assessee U/s 37(1) of the Income-tax Act, 1961." It is, however, seen that in the appeals of the Revenue filed before the ITAT for A. Yrs. 2008-09 and 2009-10, the Tribunal in ITA Nos. 1700 & 4796/Del./2012 has decided the issue in the identical facts and circumstances, as under : 7. Having gone through the orders of the authorities below, we find that following note (assessment year 2008-09) was filed before the authorities below on the objectives and project of the society to establish its contention by the assessee that the purpose was not to earn profit but to help the ruler poor: "Nature of' Project Expenses Debited in Profit & Loss account: IFFDC has debited Project Expenses of Rs. 3 ,18,74,470.70 (Rupees Three Crore Eighteen Lakhs Seventy Four Thousands Four Hundred Seventy and Seventy Paise only) which are purely of Revenue nature. During 2007-08 IFFDS has implemented several projects in different states with the Financial support from IFFCO, State Govts. ICAR, RUDA, etc. The major a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rginalized and ostracized communities such as the Kanjar tribe. The Society received the Times of India Social Impact Awards for the reasons that, ''through watershed development, crop improvement methods, afforestation etc, IFFDC has had a substantial impact on livelihoods in Rajasthan, UP and MP. Its equitable and general focus participated approaches are estimated to have benefited 3.8 lac people ". lt is evident that the appellant, which represents fertilizer company IFFCO's Corporate Social Responsibility Wing, has its primary purpose of working with rural communities and enabling them to manage their land and resources through self help groups. The Assessing Officer has mistakenly considered the purpose of the business to be the trading of fertilizers, to which all expenditure must be directed. Moreover, I am in agreement with the appellant's contention that the assets created, namely forests on waste land, check dams, ponds, etc. become the property of the villages, managed through village communities, and the appellant society only provides expertise and funding. Hence, I am unable to uphold the findings of the Assessing Officer that the expenditure had not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and purpose. M/s Indian Farmers Fertilizer Cooperative Ltd. had sold and supplied fertilizer that was marketed/sold by the respondent- assessee to earn profit/income, because the respondent-assessee was engaged in social and economic development activities. Association and business relationship with M/s Indian Farmers Fertilizer Cooperative Ltd. was predicated and connected on the respondent-assessee performing and undertaking the social-welfare economic activities. Grants received from government and foreign agencies were to be utilized for the specific purpose i.e. the object and purpose of social and economic upliftment etc. If the respondent assessee was not engaged in and had not undertaken the aforesaid activities, it would not have received the grants and would not have undertaken sale and marketing of fertilizers. The respondent-assessee was therefore required to incur the said expenditure, in order to run, operate and continue its business. 14. We perceive that there is a degree of contradiction in the plea raised by the Revenue, when they claim that the respondent-assessee was not engaged in 'business' or the expenditure incurred was not on Account of business expedien ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
