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TMI Blog2015 (12) TMI 1872X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the assessee is eligible for deduction u/s 80IB. Addition of electricity expenditure - AO while making the disallowance relied on the statement of Smt. Anju Saraf recorded on 07-12-2009 before the ACIT, Circle-1, Nagpur wherein it has been stated that crushing and screening machines are run on generator and there is no electricity connection is available for running crushing and screening machines - HELD THAT:- It is clear that the assessee has paid the expenditure on account of electricity to its associate concern. The expenditure is duly supported by bills and vouchers. Such expenditure were claimed in earlier years and were allowed. Merely because the expenditure was paid to sister concern, the same cannot be disallowed. Accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the I.T. Act 3. We have heard both the counsel and perused the records. At the outset in this case learned counsel of the assessee submitted that on merits the issue is covered in favour of the assessee by the decision of the Tribunal in assessee s own case for assessment year 2004-05 wherein on identical issue and on identical facts the Tribunal has held that the assessee was eligible for deduction u/s 80IB. 4. Per contra learned D.R. has stated that the ITAT s decision has not elaborately discussed the issue and hence the same is not applicable on the facts of this case. 5. Upon careful consideration we find that this Tribunal in assessee s own case for assessment year 2004-05 vide order dated 24-07-2009 had held that the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of DG set for emergency power breaks does not arise. 3. On the facts and in the circumstances of the case the ld. CIT(A) erred in directing the Assessing Officer to delete the addition on account of wind mill maintenance expenses of Rs.13,36,833/-. 4. On the facts and in the circumstances of the case the ld. CIT(A) erred in holding that disallowance cannot be made if no section under which the disallowance made is not mentioned. 5. On the facts and in the circumstances of the case the ld. CIT(A) erred in not appreciating that disallowance of business expenditure can be made u/s 37 of the Act. 6. On the facts and in the circumstances of the case the ld. CIT(A) erred in ignoring the fact that the amount claimed as expenditure is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idering the above, learned CIT(Appeals) held as under : I have carefully considered the facts of the case. It is an uncontroverted fact that the assessee is doing the business from the same premises as a sister concern. There is no separate electricity connection held by assessee. As pointed out by AR the agreement with M/s RBSSN the associate concern was to enter into for continuous supply of electricity and power. The expenditure is duly supported by bills and vouchers. Merely because the expenditure was paid to sister concern there is no ground for disallowance made by AO. I am therefore of the opinion that AO has not made out a case for disallowance electricity expenditure. AO is therefore directed to delete the addition made. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. is a associated company and the payment made to said company appears excessive. The AO, therefore, restricted the allowance to Rs. 6 lacs on the basis of actual maintenance for less than year and disallowed Rs.13,36,833/-. 14. Before the learned CIT(Appeals) the assessee submitted that the payee is not covered u/s 40A(2)(b) as it is a limited company based in Channai and is not an associate company with the assessee. It was further submitted that these amounts were paid by account payee cheque in pursuance to a contract and invoice and the receipts were produced. Considering the above, learned CIT(Appeals) held as under: I have carefully considered the issue as pointed out by appellant. AO has not stated under which section o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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