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TMI Blog2015 (5) TMI 306X X X X Extracts X X X X X X X X Extracts X X X X ..... that in the chart reliance has been placed on various judicial pronouncements which may also include the decision rendered by the Tribunal in assessee's own case, therefore, wherein the issue is covered by the order of Tribunal in assessee's own case, reference, is made by us only to the decision of the Tribunal which is rendered in own case of the assessee. This is being done for the sake of brevity. ITA No. 4566/Mum/2003 (Assessee's appeal & ground Nos. 4 and 5 of ITA No. 4465/Mum/20013, Revenue's appeal) 4. Ground no.1 relates to the disallowance of Rs. 39,72,055 relating to interest on application money for tax free bonds. As per the chart, it is the case of the learned AR that similar issue has been considered and decided by the Tribunal in the assessee's own case for A.Y. 1987-88. Reference was made to the decision of the Tribunal dated 16.05.2014 passed in ITA No. 4464 & 4565/Mum/2003, copy of which has been placed at Sr. No.5 of the paper-book. The relevant discussion of the Tribunal is found in para 5 & 6 of its order, which reads as under:- "5. Ground No.1 as reproduced above is relating to taxing of the interest amount received by the assessee on application money f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee learned CIT(A) has decided this issue in the favour of assessee. 7. The second limb of the issue relates to disallowance of investment allowance on dividend and interest income earned by the assessee as under: Dividend from Tata Fertilizers Ltd. Rs.589.97 lakhs Dividend from UTI Rs.402.69 lakhs Dividend from other companies Rs. 63.24 lakhs Interest on debentures Rs. 3.15 lakhs Interest on tax free bonds Rs.538.2 lakhs The assessee in its appeal in ground no.2 is agitating the disallowance u/s. 32AB on the aforementioned dividend and interest, whereas revenue in its appeal in ground no. 5 is agitating the order of the CIT(A), vide which it has been held that the assessee is entitled to claim deduction u/s. 32AB in respect of amount of Rs. 4,73,55,170 deposited with the IDBI. 8. Further, learned CIT(A) has directed the AO to include the following income for the purpose of grant of deduction u/s. 32AB which has been agitated by the revenue in ground no.4 of its appeal:- Income of earlier year Rs.56.35 lakhs Town income Rs.31.63 lakhs Rental income from employees Rs. 1.95 lakhs 9. As per the submissions made in the chart, the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed upon by the AR after bringing all the facts on record. So far as it relates to ground no.5 of revenue's appeal, in view of above discussion, we dismiss the same. 11. To sum up, ground no.2 of the assessee appeal and ground no.4 of the revenue's appeal is allowed for statistical purpose in the manner aforesaid and Ground no.5 of the revenue's appeal is dismissed. 12. Ground no.3 of assessee's appeal relates to disallowance of Rs. 1,62,20,000 being provision for employees pending settlement of their demands. This ground was not pressed as the said amount was allowed on payment basis in A.Y. 1992-93. This ground is dismissed being not pressed. 13. Ground no.4 relates to disallowance of expenses on issue of convertible debentures amounting to Rs. 17,94,514. This ground was stated to be covered by the decision of the Tribunal dated 26.04.2013 in ITA Nos. 4564 & 4463/Mum/2003 for A.Y. 1986-87, copy of which is placed at Sr. No.4 of the paper-book. This issue has been discussed at para 18 to 21, which is reproduced below: "18. Ground no.6 relates to disallowance of Rs. 1,96,864/- incurred on issue of convertible bonds/debentures. 19. The AO has discussed this issue at page 5 para ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be covered by the aforementioned order of the Tribunal dated 16.05.2014 in the assessee's own case for A.Y. 1987-88 in ITA No.4565/Mum/2003. We find that that the Tribunal in the said order vide para nos. 9 & 10 has held as under: "9. Ground No.3 as reproduced above is relating to the disallowance of foreign exchange fluctuation loss as revenue expenditure and further disallowance of investment allowance on increase in liability on account of foreign exchange fluctuation loss. The ld. A.R. of the assessee has submitted that the issue taken vide ground No.3 is covered in favour of the assessee by the decision of the Tribunal in the own case of the assessee for assessment year 1986-87 vide ITA No.4564/M/2003. The Tribunal, while dealing with the issue in question in para 17 of the said decision, has observed as under: "17. The Ld. Senior Counsel pointed out that this issue has been decided in favour of the assessee in assessee's own case in ITA No. 4194 & 4137/M/01 for A.Y. 1984-85. We find that the assessee has been allowed depreciation on foreign exchange fluctuation loss by the Tribunal in ITA No. 4137/M/01 at para-15 page 12 of its orders. Facts and issues being identical, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground was not pressed hence dismissed as not pressed. 19. Ground no.9 relates to disallowance of sum of Rs. 97,76,096 being addition of interest on account of interest free advances to Senegal Investment & Trading Co. Ltd. This issue was stated to be covered by the decision of the Tribunal in the assessee's case for A.Y. 1987-88, wherein vide order dated 16.05.2014 it was held as under: "23. The ground No.13 as reproduced above relates to addition of interest on account of advance to subsidiary company. The ld. A.R. has submitted that the issue is squarely covered in favour of the assessee for earlier assessment years. For reference he has relied upon the decision of the Tribunal for assessment year 1986-87 passed in ITA No.4564/M/2003. The Tribunal, while dealing with the issue, has allowed this ground following the decision of the Jurisdictional High Court in the case of 'Reliance Utilities' 313 ITR 340. The facts for this year being identical in nature, the AO is directed to decide this issue in the light of the earlier year's decisions in the own case of the assessee." Accordingly, after hearing both the parties, we direct the AO to decide the issue in light of the above de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he expenditure incurred. This ground is accordingly partly allowed in favour of the assessee." Accordingly, after hearing both the parties, we direct the AO to restrict the disallowance to 50% of the expenditure incurred. This ground is considered to be partly allowed. 23. Ground no.12 relates to disallowance of Rs. 2,29,750 being expenses on fist and prawn culture. As per chart this issue has been dealt by the Tribunal in the assessee's own case for A.Y. 1986-87 in ITA No. 4564/Mum.2003. The Tribunal vide its order dated 26.04.2013 has observed as under: "22. Ground no.7 relates to the disallowance of expense of Rs. 2,22,508/- incurred on fist and prawn culture. 23. The AO has discussed this issue at page -6 para 15 of his order and the Ld. CIT(A) has decided the grievance at para - 12 page 44 of his order. We find that the similar issue has come up before the Tribunal in assessee;s own case for A.Y. 1985-86 in ITA No. 5181/M/02. We find that the Tribunal has discussed this issue at para - 66 and the findngs of the Tribunal is given at para - 70 of its order. We find that the Tribunal has followed the decision of the Tribunal in assesee's own cae for A.Yrs. 1981-82 & 1982-83 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it has observed as under: "15. The ground No.7 relates to disallowance of sundry contributions under section 40A(9) and payments to schools (staff welfare expenses). So far the issue relates to disallowance of sundry contributions is concerned, the ld. A.R. has submitted that the issue raised vide ground No.7 is squarely covered in favour of the assessee for earlier assessment years i.e. assessment year 1985- 86, 1986-87, 1995-96 and 1996-97. For reference we take up the decision of the Tribunal for assessment year 1986-87. The Tribunal vide para 51 of the order has observed as under: "51. This issue find place at page-12 para 26 of the assessment order and at page-28 para-10 of the appellate order. Identical issue came up for hearing in the case of the assessee in A.Y. 1983-84 in ITA No. 4058/M/99, ITA No. 2706/M/2000 for A.Y. 1993-94, ITA No. 454/M/02 for A.Y. 1994-95, ITA No. 3082/M/02 for A.Y. 1995-96 and ITA No. 5181/M/02 for A.Y. 1985-86. We find that the Tribunal in ITA No. 5181/M/02 in assessee's own case has decided a similar issue at para- 140 of its order wherein the Tribunal has followed the earlier decision of the Tribunal in assessee's own case for A.Yrs 1993 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is concerned, this was stated to be covered by the order of the Tribunal dated 16.05.2014 in the assessee's own case for A.Y. 1987-88. In the said order vide para 31, it has been held as under: "31. The ground No.18 as reproduced above relates to disallowance under section 43B. The assessee has agitated the disallowance on royalty on limestone of Rs. 1,75,384/- and mineral rights tax of Rs. 97,18,528/-. So far the royalty on limestone is concerned, the ld. A.R. has submitted that the issue has been allowed in the earlier assessment years including assessment I.T.A. No .44 64/ Mum/20 03 I.T.A. No .45 65/ Mum/20 03 15 year 1986-87 in ITA No.4564/M/03 in the own case of the assessee. The Tribunal, while dealing with the issue in para 36 of the said decision, has restored the issue back to the file of the AO to verify the payments, observing as under: "36. These items of disallowances are discussed by the AO at page-10 para-23 of his order. The AO has disallowed Royalty of Limestone at Rs. 1,71,003/- following the assessment order of his predecessor for A.Y. 1984-85. The Ld. CIT(A) considered this issue at page-62, para-18 of his order for A.Y. 1984-85. We find that the matter trave ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c. 43B and if it is found correct, then AO is directed to allow the deduction. This grievance of the assessee is allowed for statistical purposes. 29. So far as the issue relating to Mineral Rights Tax is concerned, respectfully following the decision of the Tribunal in the assessee's own case (supra), we decide the issue against the assessee. 30. Accordingly ground no.16 is partly allowed in the manner aforesaid. 31. Ground no.17 relates to disallowance of 20,00,000 out of provision for doubtful debts. According to the submissions made by the learned AR, since the amount was written back in financial year ending 31.03.1990 and was not taxed, this ground is not pressed. Accordingly, this ground is dismissed as not pressed. 32. Ground no.18 relates to disallowance of Rs. 1,39,420 on account of expense incurred on new projects. This is for survey and market study of LAB a chemical agent used to be mixed with soda ash for making detergent powder/washing powder. It is the contention of the learned AR that out of the said amount the assessee does not press for disallowance of Rs. 1,15,420 incurred on Kamal Oil Refinery, which is a new business. The only case of the assessee is for b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of food expenses amounting to Rs. 4,79,458 and rest of the disallowance is upheld as not pressed. This ground is partly allowed. 34. Ground no.20 relates to disallowance of sponsorship expenses amounting to Rs. 17,448/-. This ground was not pressed due to smallness of amount, the same is dismissed as not pressed. 35. Ground no.21 relates to calculation of interest u/s. 214 amounting to Rs. 8,097. Due to smallness of amount, this ground was also not pressed. Accordingly, this ground is dismissed as not pressed. 4465/Mum/2003 AY :1988-89(Revenue's appeal) 36. Ground no.1 relates to disallowance of Rs. 4,17,990 being entertainment expenses on subsidized food coupons delivered to staff. In this respect it was submitted that this issue is covered in favour of the assessee by the order of the Tribunal dated 16.05.2014 in ITA No. 4464/Mum/2003 for A.Y. 1987-88 , at para 36 which reads as under: "36. Ground No.1 relates to the subsidized lunch coupons issued to the employees' entertainment expenditure u/s 37(2) read with explanation (iii). The identical issue has already been decided by the Tribunal in favour of the assessee in the earlier assessment years i.e. assessment year 1995-9 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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