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TMI Blog2015 (11) TMI 290X X X X Extracts X X X X X X X X Extracts X X X X ..... in all cases where the railways have been able to prove their delivery at some plant or stock yard of the assessee though not the original destination, appears to be a regular feature, in past many years. Thus there is sufficient force in the submissions of the assessee and this is a regular feature, which is normal debit in almost every year.Thereafter he further held that since this debit of ₹ 102 lakhs is on account of a claim accounted as income in the earlier A.Y. which has been reversed in this year after settlement with the railways, it is allowable in this year. Therefore the disallowance of ₹ 102 lakhs is deleted in this year also. - Decided against revenue. Allowability of depreciation on water supply and sewerage plant - Held that:- This issue is covered in favour of the assessee and against the Revenue by the decision of the ITAT in a ssessee's own case for the A.Y. 2007-08 Disallowance of interest claimed on KFW Germany loan transfer to Foreign Exchange Fluctuation Reserve - Held that:- Admittedly this issue has arisen for the A.Y. 1998-99 onwards to the A.Y. 2002-03. The ITAT had deleted the disallowance in all these years. For the A.Y. 2007-08 the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowance made on account of Foreign Exchange Fluctuation amounting to ₹ 1413 lacs. 4. The Ld. CIT(A) erred in law and on the facts in deleting the disallowance made on account of depreciation on assets not in active use amounting to ₹ 25.75 lacs . 5. The Ld. CIT(A) erred in law and on the facts in deleting the disallowance on depreciation on Fiber Optic Computer Networking and UPS amounting to ₹ 5.73 lacs . 6. The Ld. CIT(A) erred in law and on the facts in deleting the disallowance made u/s 43B of the Income Tax Act, 1961, amounting to ₹ 297.67 lacs . 7. The Ld. CIT(A) erred in law and on the facts in restoring back the matter to the file of the AO for verification on account of depreciation on the intangible assets of mining rights amounting to ₹ 4868.34 lacs. 8. The Ld. CIT(A) erred in law and on the facts in restoring back the issue of disallowance of depreciation on the intangible assets of mining rights. 9. The Ld. CIT(A) erred in law and on the facts in deleting the addition on account of Long Service Awards provided on actuarial basis amounting to ₹ 583 lacs . 10. The Ld. CIT(A) erred in l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the depreciation on proportionate basis on reduction amount of assets relying upon the provisions of section 43(1), 43(6) 32 (1) which according to him clearly allowed depreciation on reduced written down value of assets. In this respect explanation 10 to section 43(1) which states that where a portion of the cost of an asset acquired by the assessee has been met directly or indirectly by the Central Govt. or by State Govt. or any authority established under any law in the form of a subsidy or grant then so much of the cost as it relatable to such subsidy or grant of reimbursement shall not be included in the actual cost of the assets of the assessee. The assessee submitted before the Assessing Officer that when a loan is obtained if it is of a capital nature and when loan is utilized, it does not become an expense. Therefore, when a loan is waived/written off by an assessee, it is not an allowable deduction as it is capital in nature and similarly when the loan is waived in favour of assessee it retains its capital nature and does not result into a taxable receipt. It further submitted that when an asset is revalued up-ward depreciation allowance as per Income Tax Act remains a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r on being found as not recoverable, it is allowable u/s 28,36 37 of the Act CIT [A] has been allowing similar Prior Period Expenses from AY 2001-02 onwards on the basis of crystallization / accrual-including AY 2007-08. 10.2. The First Appellate Authority has allowed the claim of the assessee by observing that lodging of the claim by the company on railways for the wagons not reaching their destination and being reversed in all cases where the railways have been able to prove their delivery at some plant or stock yard of the assessee though not the original destination, appears to be a regular feature, in past many years. Thus there is sufficient force in the submissions of the assessee and this is a regular feature, which is normal debit in almost every year. Thereafter he further held that since this debit of ₹ 102 lakhs is on account of a claim accounted as income in the earlier A.Y. which has been reversed in this year after settlement with the railways, it is allowable in this year. Therefore the disallowance of ₹ 102 lakhs is deleted in this year also. 10.3. We find no infirmity in the order of the First Appellate Authority. Hence we uphold the same an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sr.D.R. relied on the decision of Hon'ble Gujarat High Court reported in 366 ITR 117. The assessee relied on the judgement of the Jurisdictional High Court in the case of CIT vs. AIMIL Ltd. 188 Taxman 265 (Del.). 16.1. We follow the binding judgement of the Jurisdictional High Court and dismiss this ground of Revenue. The fact that the PF dues were deposited within the grace period, allowed under the respective Act, and before the due date of submitting the return u/s 139(1) of the Act is not in dispute. 17. The next ground is against the order of the Ld.CIT(A) restoring to the AO, for verification, the disallowance on depreciation on intangible assets on mining rights. 17.1. We find that the Ld.CIT(A) has not restored this issue to the A.O. Hence the ground is not correct. Hence we dismiss this ground as misconceived'. 18. The next ground is on the issue of allowability of actuarial provision, for long service awards. This issue is also admittedly covered by the order of the Tribunal for the A.Y. 2007-08. This issue is discussed at paras 52 to 54 of that order. Consistent with the view taken therein, we uphold the finding of the First Appellate Authority and d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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