2018 (6) TMI 602

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..... . 1,00,00,000/- made by AO ignoring the fact that contribution towards fund is application of income and not allowable U/s 37(1) of the Income Tax Act, 1961. (ii) The appellant craves its rights to add, amend or alter any of the ground on or before the hearing." 2. The only issue raised in this appeal of the Revenue is the Contribution made by the assessee to Energy Conversation Fund of Rs. 1,00,00,000/- was disallowed by the AO however, the same was allowed by the ld. CIT(A). The assessee company was nominated as State Designated Agency (SDA) Bureau of Energy Efficiency (BEE) Ministry of Power, Government of India for promote efficient use of energy and its conservation. The energy Department has constituted "Rajasthan State Energy Co .....

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..... 17 in ITA No. 88/JP/2016 in para 91 to 94 as under :- "91. In respect of ground No. 7, the Revenue has challenged the action of ld CIT(A) in deleting disallowance of contribution to energy conservation fund of Rs. 1 crore. Brief facts of the case are that the assessee contributed Rs. 1 crore to State Energy Conservation Fund to be spent on conservation of energy as and when required. The AO held that the contribution so made is not wholly & exclusively for assessee business of generating renewable energy. He therefore, disallowed the same. On appeal, the Ld. CIT(A) by relying on the decision of Coordinate Bench in assessee's own case in ITA No.983/JP/13 for AY 2008- 09 deleted the disallowance. 92. The ld AR submitted that the issue i .....

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..... servation Act, 2001. The case law relied by the assessee of the judgment of the Hon'ble jurisdictional High Court in the case of CIT Vs. Raj Shipping and Weaving Mills Ltd. (supra) is squarely applicable in the case of the assessee wherein it has been held that contribution to the fund set up for products which was also the business of the assessee has direct nexus to the advancement of the assessee business." Following the above judgment, the disallowance on account of contribution to energy conservation fund of Rs. 1,00,00,000/- made by the Assessing Officer is directed to be deleted. This ground is allowed." 94. Undisputedly, there is no change in the facts and circumstances of the case or any authority which has been brought to ou .....

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