9911796707
TMI Blog2014 (5) TMI 350X X X X Extracts X X X X X X X X Extracts X X X X ..... orged flanges etc. It filed its return of income for AY 2008-09 on 30.9.2008 declaring total income of Rs 2,69,62,940/-. The case was selected for scrutiny and thereafter the assessment was framed u/s 143(3) vide order dated 21.12.2010 and the total income was determined at Rs 2,88,53,673. Aggrieved by the order of AO, Assessee carried the matter before CIT(A). CIT(A) vide order dated 16.7.2012 granted partial relief to the assessee. Aggrieved by the order of CIT(A), Assessee is now in appeal before us. The grounds raised by the Assessee reads as under:- 1. The learned Commissioner of Income Tax (Appeals) has erred in law and on facts of the appellant's case in upholding the disallowance of Rs. 11,00,000/- being membership fee on the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the glory of ethical business practices. AO was of the view that Assessee was not able to establish any commercial benefits achieved by incurring the expenditure and thus it was not for the purpose of business but was in the nature of charity. He accordingly held the amount paid as non business expenditure and disallowed the same. Aggrieved by the order of AO, Assessee carried the matter before CIT(A). CIT(A) upheld the order of the AO by holding as under:- 3.2 I have considered the appellant's submissions and the AO's observations. The appellant has filed some print outs of details given on the web site of JITO as also the letters written by the organization to the Director of the appellant. From these-documents, it is seen th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e us, the Ld AR has submitted that JITO is not a religious organization but a trade organization and the expenses is for the business of the Assessee. We find that there is no finding of CIT(A) about the nature of organization with respect to JITO and thereby the fees paid by Assessee is not in the nature of membership fees but is in the nature of donation or charity. We therefore feel that in the interest of justice the matter needs re-examination and we therefore remit the issue to the file of CIT(A) for fresh examination at his end in the light of the submissions made by the assessee and the decisions relied by it and thereafter decide the issue as per law and after giving a reasonable opportunity of hearing to both the parties. Thus thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... What the AO has done is that he has rejected the diminution in the value of the raw material on account of alleged conversion to scrap during this period of 3 days and has accordingly valued a part of the closing stock claimed by the appellant as scrap on 31.3.2008 at cost of the raw material. Since the appellant has not been able to explain the discrepancies by giving the quantitative details backed by documentary evidences, hence the AO's action is up-held and this ground of appeal is dismissed. 8. Aggrieved by the order of CIT(A), Assessee is now in appeal before us. 9. Before us, the Ld. A.R. reiterated the submissions made before the AO and C1T(A). He further submitted that the assessee had valued the stock at net realizable val ..... X X X X Extracts X X X X X X X X Extracts X X X X
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