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TMI Blog2018 (1) TMI 243X X X X Extracts X X X X X X X X Extracts X X X X ..... ntical facts - Decided against revenue CIT(A) directing the A.O. to verify the claim of the assessee in respect of a carry forward of losses as unabsorbed depreciation, Business loss and Dividend income as exempt income u/s 10(34) - plea of the revenue in ground no.2 that the CIT(A) u/s 251 of the Act does not have the power to set aside an issue to the AO and therefore his order is not in accordance with law - Held that:- The contention raised on behalf of the revenue is correct but nevertheless we are of the view that the issue requires examination by the AI and in the circumstances we direct the AO to verify the claim of the assessee and if found correct give appropriate relief. Thus ground no.2 is treated as allowed. - I.T.A Nos.153 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and procedural delays. The reasons given in the affidavit are accepted and we hold that there was a reasonable and sufficient cause for the delay in filing these appeals. The delay in filing these appeals are accordingly condoned. 4. The Assessee is a state government undertaking engaged in the business of tourism in the state of West Bengal and also in the interstate tourism development. In the course of assessment proceedings u/s 143 (3) of the Income Tax Act, 1961 (Act) the AO noticed that there was an item, of staff welfare funds of ₹ 3,17,638/- which was shown as current liability in the balance sheet. There was also another item of current liability brokerage compensation fund of ₹ 2,85,871/-. As we have already seen t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee. In Accordance with this statement the service charge should have been ₹ 31,76,380/-.. But service charge income is shown at Rs..26,32,569/- in the Schedule 12 of the Balance sheet furnished by the assessee, implying that assessee has understated its service charge income by ₹ 5,43,811/-. It appears from the accounts furnished by the assessee that no amount out of the said funds was utilised during the relevant. financial year. During the course of hearing the matter was discussed and it was found that the assessee actually understated the service charge income and the resultant cash was directly credited to the above mentioned funds. Thus. the income of the assessee amounting to ₹ 6,03,509/- which was credited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al but at the same time, the assessee is not able to justify the claim relating to breakage compensation fund. Therefore, we are of the considered view that the amounts created for the staff welfare fund are to be allowed as it is in accordance with the Minutes of the Board of Directors which is having an overriding title and basing on which the diversion of the fund was made. Accordingly, the AO is directed to delete the addition relating to the staff welfare fund only. Accordingly, the assessee's appeal is partly allowed. Considering that the above decision of the ITAT Kolkata is on identical issues in the Appellant's case for A.Y 2003-04, therefore respectfully following the order of the jurisdictional ITAT, the addition m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... end income of ₹ 7,25,760/- as exempt income u/s 10(34) of the I.T.Act, 1961 and to allow the same as per law. The issue has been set aside by the ld. CIT(A), which is not permissible in law. 9. The assessee made a claim before the CIT(A) for carry forward of loss for A.Y.1995-06 which was in the form of unabsorbed depreciation and business loss. The assessee also claimed that there was a dividend income which was wrongly included in the total income declared in the return of income. Since the dividend income is exempt u/s 10(34) of the Income Tax Act, 1961 (Act) the same should be excluded from the total income. On the aforesaid claims made by the assessee the CIT(A) directed the AO to verify the relevant assessment records with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for A.Y. 1995-96 i) unabsorbed depreciation of ₹ 1,70,56,577/-, ii) Business loss of ₹ 1,45,62,730/- and b) Dividend income of ₹ 7,25,760/- as exempt income u/s 10(34) of the I.T.Act, 1961 and to allow the same as per law. The issue has been set aside by the ld. CIT(A), which is not permissible in law. 3. The appellant craves leave to amend, modify or alter any grounds of appeal during the course of hearing of this case. A.Y.2008-09 1. That on the facts and circumstances of the case, the Ld. CIT(A) is not justified in deleting disallowance of ₹ 4,47,890/- on staff welfare expenses, considering the fact that the claim is in respect of a liability which has not been ascertained. 2. That ..... X X X X Extracts X X X X X X X X Extracts X X X X
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