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2019 (2) TMI 1371 - AT - Income TaxAllowing deduction u/s 80JJA on baggase / hunk - waste or a by-product of agri-produce - poultry farming - HELD THAT - We find that the Tribunal in assessee s own case in assessment years 2008-09 and 2009-10 has decided similar issue. The first issue decided by the Tribunal vide para 11 is with regard to the claim of deduction under section 80JJA of the Act, which was allowed by the CIT(A). The Tribunal in turn, relying on the ratio laid down by the Hon ble Bombay High Court in CIT Vs. Smt. Padma S. Bora 2012 (12) TMI 666 - BOMBAY HIGH COURT had held the assessee to be eligible to claim the deduction under section 80JJA of the Act. Claim of depreciation on windmill - HELD THAT - Tribunal had also adjudicated the aforesaid issue of depreciation on windmill vide para 14 of the order and has held the assessee to be entitled to claim the aforesaid depreciation. Following the same parity of reasoning, we uphold the order of CIT(A) in this regard and dismiss the grounds of appeal raised by the Revenue. Disallowance made on account of employees contribution to Provident Fund, ESIC and Maharashtra Labour Welfare Fund - HELD THAT - As decided in in CIT Vs. Ghatge Patil Transport Ltd. 2014 (10) TMI 402 - BOMBAY HIGH COURT to hold that in case the payments were made before due date of filing the return of income, then no disallowance is to be made under section 43B of the Act. Following the same parity of reasoning, since the assessee has made payments before due date of filing the return of income, there is no merit in making any disallowance under section 43B of the Act.
Issues Involved:
1. Deduction under section 80JJA of the Income-tax Act on baggase/hunk. 2. Claim of depreciation on windmills. 3. Disallowance on account of employees' contribution to Provident Fund, Employees State Insurance Corporation, and Maharashtra Labour Welfare Fund. Issue 1: Deduction under section 80JJA of the Income-tax Act on baggase/hunk: The Revenue challenged the CIT(A)'s decision to allow the deduction under section 80JJA without acknowledging that baggase/hunk is a by-product of the agri-produce processing industry, not waste, and the assessee did not collect or process it. The Tribunal referred to previous years' judgments and upheld the CIT(A)'s decision based on the Hon'ble Bombay High Court's ruling, allowing the deduction under section 80JJA. The Tribunal dismissed the Revenue's appeal on this ground. Issue 2: Claim of depreciation on windmills: The Revenue contested the CIT(A)'s approval of the assessee's claim for depreciation on windmills, arguing that the assessee was not the registered owner and had no right to use the asset as it purchased electricity from another entity. The Tribunal, following previous decisions, upheld the CIT(A)'s decision, allowing the depreciation claim on windmills. The Tribunal dismissed the Revenue's appeal on this ground as well. Issue 3: Disallowance on account of employees' contribution to Provident Fund, ESIC, and Maharashtra Labour Welfare Fund: The Revenue objected to the CIT(A)'s deletion of the disallowance made on employees' contributions to various funds, citing provisions of the Income-tax Act. The Tribunal referred to a High Court ruling and held that if the payments were made before the due date of filing the return of income, no disallowance should be made. As the assessee made the payments before the due date, the Tribunal dismissed the Revenue's appeal on this ground. Consequently, the Tribunal dismissed the Revenue's appeal in its entirety. This judgment addresses the Revenue's challenges regarding deduction under section 80JJA, claim of depreciation on windmills, and disallowance on employees' contributions to various funds. The Tribunal consistently relied on past decisions and legal provisions to uphold the CIT(A)'s decisions in favor of the assessee, ultimately dismissing the Revenue's appeal.
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