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TMI Blog2024 (2) TMI 1498X X X X Extracts X X X X X X X X Extracts X X X X ..... r passed by the Commissioner of Income Tax (Appeals), Vijayawada, as that also of the Assessing Officer. 4. The issue involved in the present Income Tax Tribunal Appeals is in respect of the proceedings issued under Section 115 WE of the Income Tax Act, 1961. 5. The facts in brief is that the appellant company which is a public sector undertaking of the Government of Telangana and Government of India is into the business of coal extraction and sale. The establishment is one which is primarily governed under the provisions of Mines Act, 1952. Taking into consideration the compelling work conditions under which the work force under the appellant establishment works, the employees/workers are provided with certain benefits by the appellant herein in the capacity of being the employer towards the welfare of the employees/workers and their family dependent upon them. The service conditions governing the work force i.e. workers and the employees are governed by the National Coal Wages Agreement. The said agreement is entered into between the management of the appellant establishment and the Joint Bipartite Committee for Coal Industry (JBCCI). The JBCCI consists of the representatives o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... explanation so provided to Clause E of sub-section 2 of Section 115WB, the appellant herein have been pursuing with the respondents stating that the expenditure incurred towards providing of electricity to the employees would not be one which would be taxable as it stands exempted in terms of the explanation so provided which perhaps was not accepted by the Assessing Officer, Commissioner of Appeals and subsequently by the ITAT as well. 10. The contention of the Assessing Officer was that firstly, the benefit so provided being a welfare measure, the expenditure would fall squarely within the ambit of Clause E of sub-section 2 of Section 115WB and hence, it becomes taxable. Second condition was that the NCWA is only a settlement between the employer and employees where there is only a contractual obligation for the employer towards its employees. That it is not a statutory document nor does the settlement have any statutory force of law so as to avail the benefits under the explanation to Section 115WB (2) (E) both under the un-amended provision and as also under the amended provision. 11. It is necessary at this juncture to take note of the couple of decisions rendered on the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for appointment of the petitioner on compassionate ground in the year 2011. Due to indecisiveness on the part of the mother of the petitioner, it was not possible on the part of the respondents to consider the case of the petitioner for compassionate appointment. (ii) It is a settled position that the compassionate appointment is not a matter of right, rather, it is a matter of concession. On perusal of the impugned Annexure-19 to the writ application, the same does not suffer from any infirmity or irregularity so as to warrant interference of this Court. (iii) So far as the claim of the petitioner for grant of monetary compensation as admissible under the relevant provisions of the N.C.W.A. is concerned, the mother of the petitioner is entitled, provided that she files an application for grant of the same". 13. Two similar issues under the provisions of the Income Tax itself came up before the Nagpur Bench of the Bombay High Court, first in Income Tax Appeal No. 40 of 2015. In the case where it was an appeal filed by the Commissioner of Income Tax against M/s. Western Coalfields Ltd., Nagpur, the Division Bench took the following stand: "6. Two additional questions, to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of expenditure on the welfare of employees by the Assessment Officer and maintained by the Commissioner of Income Tax [Appeals] but reversed by the Income Tax Appeal Tribunal is the subject matter of challenge in this appeal filed at the instance of the Revenue. These fringe benefits pertain to expenditure made in the context of value of free issue of coal, medical facilities, educational facilities, grants to school and institutions, sports and recreational facilities. The Tribunal has held that in view of the provisions of the National Coal Wage Agreement, the provision of such benefits were made being statutory obligations and hence were not exigible to Fringe Benefit Tax. 3. Shri A. Parchure, learned counsel for the appellant submitted that not withstanding the National Coal Wage Agreement, with regard to the head Sports and Recreation Facilities, the provisions of Section 115WB (2) (E) and explanation thereto introduced by virtue of Finance Act of 2008 such expenditure made was not to be considered as expenditure for employees welfare. He, therefore, submits that since the present proceedings pertain to the assessment year 2006-07, the explanation cannot be given retrosp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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