9911796707
TMI Blog2015 (11) TMI 290X X X X Extracts X X X X X X X X Extracts X X X X ..... n account of downward revaluation of assets (by reduction) in A.Y. 2000-2001. 2. That the appellant seeks leave to add, amend, alter, abandon or substitute any of the above grounds at the time of hearing of appeal." ITA 4279/Del/2013 1. "The Ld. CIT(A) erred in law and on the facts in deleting the addition of prior period expenses amounting to Rs.l02 lacs". 2. "The Ld. CIT(A) erred in law and on the facts in deleting the addition of in respect of depreciation on water supply & sewerage plants amounting to Rs. 60.83 lacs." 3. "The Ld. CIT(A) erred in law and on the facts in deleting the disallowance made on account of Foreign Exchange Fluctuation amounting to Rs. 1413 lacs." 4. "The Ld. CIT(A) erred in law and on the facts in del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O. completed the assessment u/s 143(3), determining the total income at Rs. 10,27,511.57 lakhs. He assessed book profits u/s 115 JB of the Income Tax Act, 1961 (the Act) at Rs. 99,26,329.81 lakhs. Aggrieved the assessee carried the matter in appeal. 3. The First Appellate Authority granted part relief. On the issues which were decided against the Revenue, by the First Appellate Authority, the A.O. filed these appeals. The assessee filed an appeal on the sole issue of disallowance of prorata depreciation. 4. We have heard Shri KK Jaswal, the Ld.Sr.D.R. on behalf of the Revenue and Shri MP Rastogi, the Ld.Counsel for the assessee. 5. On a careful consideration of the facts and circumstances of the case, on perusal of orders of lower author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directly 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 reva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all the wagons are sent to Ludhiana Stock yard only. Ludhiana records them in Material Diversion Statement and takes it into stock. The railways, in due course of time trace the wagons not delivered at its destination but at another place. Then they give the details to the company and it verifies them, after which it makes the necessary adjustments in accounts. It so happened, that TMT Steel dispatched on IPT (Inter Plant Transfer) basis in FY 2007-08 got delivered at BSO (Branch Sales Office) Bhilai in February 2008. When the Plant did not receive the goods, a claim was lodged on railways and accounted as income. When the wrong delivery was brought to our notice in FY 2008-09 (after 31-3-2008), necessary adjustments were done in accounts a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and sewerage plant. 11.1. Admittedly 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 in order dt. 25.10.2012 in ITA 1488/Del/2011. The findings are at para 46 to 48 of that order which are not extracted for the sake of brevity. 11.2. Respectfully following the same, we uphold the order of the First Appellate Authority and dismiss this ground of the Revenue. 12. The next ground is on disallowance of interest claimed on KFW Germany loan transfer to Foreign Exchange Fluctuation Reserve as per loan agreement of Rs. 1413 lakhs. The Ld.Counsel pointed out that the correct figure is Rs. 1656.68 lakhs. 13. Admittedly this issue has arisen for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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