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TMI Blog2017 (9) TMI 1954X X X X Extracts X X X X X X X X Extracts X X X X ..... lding that expenditure were not incurred wholly and exclusively for the purpose of the business and that alternatively it was capital in nature. We thus do not find infirmity in the first appellate order on the issue also because in earlier assessment years 2004-05 to 2007-08 when assessments were framed under sec. 143(3) of the Act similar expenditure have been accepted. Similar are the facts of the case in the assessment year 2009-10. The finding of the Ld. CIT( Appeals) is thus upheld. - Decided in favour of assessee. - ITA No. 6831/Del/2014 - - - Dated:- 6-9-2017 - SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER For the Appellant : Shri Arun Kumar Yadav, Sr. DR For the Respondent : Shri Rahul Kochar, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e deduction since not laid out wholly and exclusively for the purpose of business. In the earlier years i.e. A.Y. 2008-09 2009-10, this issue was examined in details and after detailed discussion in both A.Y.s, the claim of assessee in respect of project expenses was not treated as revenue expenditure and same was disallowed u/s 37( 1) of the Income Tax Act, 1961. The Ld. CIT Appeal has deleted the addition made on account of treating project expenses as capital expenses in A. Y.2008-09 2009-10. The department has already filed appeal before the Hon'ble ITAT in both the A. Ys., and decision on the appeals filed are still pending. In view of the above facts and circumstances, I hold that the project expenses of ₹ 4,28,22,481 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Training on different crafts like Handicraft Bamboo craft stitching, meenakari, pottery etc., watershed Development - soil and water conservation activities pond deepening, construction of Stop-dam etc., Liver stock Development distribution of improved breed of goat and poultry, vaccination camps etc. Training and capacity building of community, self help group development, Micro-enterprises development etc. All these activities were conducted to improve the livelihoods of the rural community, upliftment of backward/poor people in tribal/rural areas at different locations in various States. These activities were implemented in consultation with community and community is using these for further use and up-scaling. The IFFDC has been receiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed communities such as the Kanjar tribe. The Society received the Times of India Social Impact Awards for the reasons that, ''through watershed development, crop improvement methods, afforestation etc, IFFDC has had a substantial impact on livelihoods in Rajasthan, UP and MP. Its equitable and general focus participated approaches are estimated to have benefited 3.8 lac people . lt is evident that the appellant, which represents fertilizer company IFFCO's Corporate Social Responsibility Wing, has its primary purpose of working with rural communities and enabling them to manage their land and resources through self help groups. The Assessing Officer has mistakenly considered the purpose of the business to be the trading of ferti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot find infirmity in the first appellate order on the issue also because in earlier assessment years 2004-05 to 2007-08 when assessments were framed under sec. 143(3) of the Act similar expenditure have been accepted. Similar are the facts of the case in the assessment year 2009-10. The finding of the Ld. CIT( Appeals) is thus upheld. The ground No. 1 of the appeals is accordingly rejected. 3. In view of the above, we find that the issue under consideration is squarely covered in favour of the assessee by the aforesaid decision of ITAT as reproduced above. Therefore, respectfully following the decision of coordinate bench, we find no merits in the appeal of the Revenue and accordingly, the same is liable to be dismissed. 4. In the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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