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TMI Blog2018 (8) TMI 1839X X X X Extracts X X X X X X X X Extracts X X X X ..... y assessment inter alia noticed that the assessee has claimed deduction of ₹ 6,84,95,000/- transferred to reserve fund as a revenue expenditure. It was the case of the assessee before the lower authority that transfer to such fund is allowable expenditure being statutory obligation of the assessee and simultaneously assessee does not have any right over the said funds once the same is transferred. The AO as well as the CIT(A) held that the aforesaid transfer to reserve fund is not in the nature of charge to Profit Loss Account and is merely an appropriation of funds. Similar view has been taken in assessee s own case by the co-ordinate bench of Tribunal. Therefore, the issue is no longer res integra. In parity with the decision o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2011-12 & 2012-13) - - - Dated:- 2-8-2018 - Shri Pradip Kumar Kedia And Shri Mahavir Prasad, JJ. Assessee by: Shri Sunil Talati, A.R. Revenue by: Smt. Aparna Agarwal, CIT. D.R. ORDER Pradip Kumar Kedia, The captioned appeals have been filed by the Assessee (ITA N0.3023/Ahd/2014) and Revenue (ITA Nos. 3220/Ahd/2014 2533/Ahd/2016) against the respective orders of the CIT(A) concerning AYs. 2011-12 2012-13. ITA No. 3023/Ahd/2014 - AY 2011-12 2. The grounds of appeal raised by the assessee reads as under: 1. The learned C.I.T. (Appeals) erred both in law and on facts in confirming the disallowance of ₹ 6,84,95,000/- being amount transferred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) held that the aforesaid transfer to reserve fund is not in the nature of charge to Profit Loss Account and is merely an appropriation of funds. Similar view has been taken in assessee s own case by the co-ordinate bench of Tribunal. Therefore, the issue is no longer res integra. In parity with the decision of the co-ordinate bench in earlier years, the appeal of the assessee on the aforesaid subject matter requires to be dismissed. 6. In the result, appeal of the assessee in ITA No.3023/Ahd/2014 is dismissed. 7. We shall now turn to Revenue s appeal in ITA No.3220/Ahd/2014. ITA No.3220/Ahd/2014 2011-12 8. The solitary ground of appeal raised by the Revenue contesting the order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation for development and strengthening the co-operative structure and thereby improving milk productivity. In the process to achieve such objects, the assessee has incurred expenditure to the tune of ₹ 824.94 Lakhs which is in the nature of revenue expenditure to improve the quality and bring efficiency in production as well as to achieve unfettered supply. In this background, the CIT(A) observed that identical issue involved in preceding assessment years have been decided in favour of the assessee by the predecessor CIT(A) and the claim of such expenditure was accepted as revenue expenditure. As noticed, the view taken by the CIT(A) has been endorsed by the coordinate bench of ITAT in ITA No.3037/Ahd/2010 Ors. read with M.A. No. 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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