2021 (8) TMI 67 - ITAT BANGALORE

Deduction of 15% of sale proceeds in respect of B mines retained towards SPV as an allowable business expenditure - HELD THAT:- The Co-ordinate Bench order of the Tribunal in the case of M/s.Veerabhadrappa Sangappa & Co. [2020 (12) TMI 1145 - ITAT BANGALORE] on identical facts had allowed deduction of 15% of sale proceeds in respect of B mines retained towards SPV as an allowable business expenditure - we hold that 15% retained in the case of assessee by CEC is an allowable business expenditure. It is ordered accordingly.

Amount retained towards SPV for mining and dumping sub-grade material outside the leased area - HELD THAT:- We hold that the amount retained towards SPV for mining and dumping sub-grade material outside the leased area is an allowable expenditure. It is ordered accordingly.

Accrual of income - Sales accounted in Asst.Year 2014-2015, but added as income of the year - HELD THAT:- The Tribunal in the case of M/s.Veerabhadrappa Sangappa & Co. [2020 (12) TMI 1145 - ITAT BANGALORE] had decided that the sale proceeds from disclosed stock accrued to the assessee during the year under consideration and has to be considered for determining income under the head profits and gains of business for the year under consideration. Tribunal held that the income accrued in the relevant assessment year and the taxability cannot be deferred to the subsequent assessment year. The Tribunal also held that the same income cannot be taxed twice and the assessee if moves an appropriate petition, the A.O. shall consider such an application.

Difference in receipts as per 26AS treated as unaccounted receipts. (Asst.Year 2013-2014) - HELD THAT:- We direct the A.O. to consider the assessee’s reconciliation statement, provided the assessee moves an application that there is no difference in the income disclosed and receipts as per Form No.26AS. With these directions, we dispose of ground No.4 for assessment year 2013-2014.

Contribution to the Deputy Commissioner, Government of Karnataka, for Hampi Utsav (Asst. Year 2015-2016) - Allowable business expenditure - HELD THAT:- This issue we noticed is covered in favour of the assessee in assessee’s own case for assessment year 2009-2010 in [2020 (5) TMI 667 - ITAT BANGALORE] wherein it was held that the contribution made towards Hampi Utsav is an allowable expenditure u/s 37(1) of the I.T.Act.