9911796707
TMI Blog2022 (5) TMI 721X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is a Public sector company engaged in the business of production/extraction of coal. During the original scrutiny assessment proceedings by assessment order dated 25.03.2013 the AO had allowed 50% of the total claim on account of additional depreciation amounting to Rs. 4,90,94,050/- in place of total claim of the assessee to the tune of Rs. 9,81,99,100/-. Thereafter the AO issued notice u/s 148 of the Act to reopen the assessment of the assessee and thereafter completed the re-assessment u/s 147/143(3) of the Act dated 30.11.2015 wherein he was pleased not to allow the total depreciation claim of Rs. 9,81,88,100/-. 4. Aggrieved by the aforesaid order of the AO, the assessee preferred an appeal before the Ld. CIT(A) who was pleased to give partial relief to the assessee by allowing 80% of the total depreciation claim of the assessee, and thereby sustaining 20% of the disallowance of the claim of the assessee. 5. Still not satisfied by the aforesaid action of Ld. CIT(A), the assessee is before us claiming the balance 20% additional depreciation of Rs. 1,96,37,620/- which has been sustained by the Ld. CIT(A). 6. We have heard both the parties and perused the records. At ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lack of details being filed. The issue whether production/extraction of coal is manufactured or not, was not in dispute and the claim of the assessee was accepted by the Assessing Officer. 4.2 On appeal, the ld. First Appellate Authority observed as under: "16. From the submissions made, I find that: (a) In depreciation schedule that under plant and machinery Rs.834,812,000/- and Rs.1,380,039,000/- or claimed as additional depreciation. (b) Additional depreciation is claimed excluding "tele-communication tools & equipments and Railway siding" at 20% for assets acquired prior to October 08 and 10% for others. (c) Full details establishing Assessing Officer to come to a firm conclusion as to whether the stiff conditions are met for claiming additional depreciation is not furnished. Furnishing of details will only help Assessing Officer to come to a conclusion. 17. Allowance of additional depreciation is a matter to be decided based on each asset acquired. Decision depends on whether it is new (condition in proviso to section 32(1)(iia) alsois to be applied) and goes into 'manufacture or production' of "article or thing" are to be established with hard documents. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inion that the matter should be restored to the file of the Assessing Officer for fresh adjudication, after considering the details of plant and machinery used by the assessee for the purpose of extraction/raising of coal. The assessee claims to have produced audit statements which gave all the required particulars before the Assessing Officer. We direct the assessee to once again produce all the details as required by the Assessing Officer in support of his claim for deduction of additional depreciation. The additional depreciation should be granted on such plant and machinery that have been used for the production of coal. The Assessing Officer should keep in mind that the assessee is a public sector undertaking and its accounts are audited by the Comptroller & Auditor General of India and such audited statements have evidentiary value. 4.5 In the result, this ground of the assessee is allowed for statistical purposes." 7. From a perusal of the aforesaid order of the Tribunal in assessee's own case on the additional depreciation claim, we note that the issue was restored back to the file of the AO and the assessee was directed to produce all the details as required in suppor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e action of the Ld. CIT(A) in allowing 50% of the donation of Rs.17 lacs claimed by the assessee. According to revenue the AO has disallowed the donation mainly on the ground that the assessee failed to furnish any proof in support of its claim of deduction as recorded in the assessment order. We note that the AO on perusal of note 31 of Annual Report of Accounts observed that the assessee company incurred an amount of Rs. 17 lacs towards donation and subscription. So, when asked by the AO as to whether the expenditure under this head qualify for deduction, the assessee company replied that Rs. 17 lacs has been spent on donation and subscription for AY 2012713 and had furnished the area/service unit wise details of such expenses as annexure 13 for AO's reference. The assessee replied that expenses were incurred as subscription to various clubs and organization operating in the vicinity of the mining operations of the assessee besides donation to philanthropic organization like Ram Krishna Mission and Bharat Sevasram Sangha which according to the assessee was renowned for their commitment to society. According to the assessee it had made these donations for smooth running of busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al purposes." Therefore according to Ld. A.R. this issue may be remanded back to the AO so that the assessee can produce the evidence/materials to authenticate the donation made to the nearby clubs in order to substantiate its claim for deduction. 11. We have heard rival submissions and gone through the facts and circumstances of the case. And we note that the assessee has made a claim of deduction regarding donation made to the tune of Rs. 27,27,000/- but the AO disallowed the claim. On appeal, the Ld. CIT(A) has given partial relief by allowing 50% of expenditure claimed as donation. We note that on similar issue i.e. donation/expenditure claimed by an assessee in respect of donation given to the local clubs during Durga Puja etc. the Hon'ble Calcutta High Court in CIT vs. Bata India Ltd. in 201 ITR 884 (Cal) held that the same was an allowable expenses. However we note that in the present case in hand, since the assessee could not submit materials/evidence before the authorities below in respect of its claim of donation given to the local clubs, we direct the assessee to submit materials to substantiate the fact of donation it gave to local clubs/bodies during festival/sports ..... X X X X Extracts X X X X X X X X Extracts X X X X
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