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TMI Blog2019 (1) TMI 935X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of India loan has been rightly indicated in the financial statements produced before the AO and the same were reflected in the books of accounts. Therefore, addition on account of Section 41(1) does not sustain. AO as well as the CIT(A) are not correct in making and confirming the additions. Hence, Ground No. 2 is allowed. Adjustment of carry forward of losses and depreciation - Held that:- CIT(A) has not given any direction for adjustment of carry forward of losses and depreciation as per appellate order in earlier years, for which, the issue needs to be adjudicated by the CIT(A). Therefore, we are remanding back this issue to the file of the CIT(A). Needless to say, the assessee be given opportunity of hearing by following pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d sell of fertilizers for Assessment Year 2013-14, the assessee filed its return of income on 20/9/2013 declaring NIL income. The case was taken up for scrutiny under CASS. Accordingly, statutory notice u/s 143(2) of the Income Tax Act, 1961 was issued on 4/9/2014 and served upon the assessee company. In response to this notice, the assessee company filed a reply dated 10/9/2014. Thereafter, notices u/s 142(1) dated 3/7/2015, 19/8/2015, 26/10/2015 19/2/2016 along with questionnaire were issued to the assessee Company. In response to these notices, the Authorized Representative of the assessee attended the proceedings from time to time and field necessary details before the Assessing Officer. The Assessing Officer observed that during t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icals Fertilizers for its different plants. For this purpose, the Net Worth was to be made positive. The matter was taken up by the Cabinet Committee on Economic Affairs (CCEA) headed by the Prime Minister and consisting of Finance Minister and others. In its meeting held on 09-05-2013, CCEA decided to approve the recommendations of the Empowered Committee of Secretaries whereby it granted the reliefs as under- Waiver of Government of India Loan 2,739.27 cr Waiver of Interest on Government of India Loan 7,904.47 cr Waiver of LIC Guarantee Fee 9.69 cr Waiver of Consequent Tax Liabilities Following this, the assessee wrote back the amounts in its books of account for the year ended 31.03.2013 and while filing the tax return c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rlier years is that the same is covered u/s 43B and therefore not allowable. In view of this stand, the department has filed appeals before the ITAT Delhi against the orders of CIT (A) allowing the relief to the assessee. The Department cannot take two different stands on the same issue. Moreover, the department has not given appeal effects to the orders of CIT (A) in earlier years and thereby the losses to be carried forward and set off have not been determined. However, the assessee is approaching the Government of India to clarify the waivers and benefits granted to it by the CCEA order. 6. The Ld. AR also relied upon the Office Memorandum dated 21/5/2013 as well as Government of India order dated 18/8/2015 and 6/3/2018. The Ld. AR fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit to specific industry which is again coming under the purview of Government of India, Ministry of Chemical Fertilizers. The same was made for the purpose of reviving the industry. Thus, it can be seen that the assessee Company incurred a heavy loss and Government of India s policy reflected that the PSU will be given FCI Inter-corporate Loan which will be settled by the Government of India. The assessee at no point of time has claimed waiver of interest on GOI Loan, Guarantee Fee and commitment fee as its expenditure. In-fact, these were the Government Policies and will come under the purview of Section 2(XVIII) as grant in aid. The reliance of the Ld. DR on the Hon ble Delhi High Court s decision in case of Rollatainers Ltd. Vs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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