2013 (6) TMI 75

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.... fixed assets even when entire expenditure incurred towards purchase of fixed assets has already been claimed in entirety either in the current year or in earlier year and if depreciation is allowed on such assets it would amount to double deduction? (II) Whether on the facts and circumstances of the case the ITAT was justified in law in not upholding the disallowances of Rs.8,70,614/- on account of payment towards pension fund when no liability of revenue nature was determined? This appeal is directed against an order dated 24th April, 2009 by the Income Tax Appellate Tribunal, Indore Bench, Indore in I.T.A. No.42/Ind/2009. Learned counsel appearing for the revenue submitted that the Tribunal has erred in disallowing the addition ....

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....ned counsel for the respondent that it was taxable and has rightly been held so by the Tribunal. It is submitted that in the light of the judgment passed by the Tribunal in Krishi Upaj Mandi Samiti, Burhanpur, reported in 12 ITJ 12, the Tribunal has rightly decided the matter. The aforesaid judgment of the Tribunal is binding on the Tribunal and has been rightly relied on by the Tribunal. To appreciate the aforesaid contentions, we have gone through the order passed by the Tribunal. The Tribunal in paragraphs 11 and 12 of the order have considered the ground in respect of contribution to the pension fund and relying on the judgment of Krishi Upaj Mandi Samiti, Burhanpur (supra), the aforesaid contribution has been rightly allowed. Apa....

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....ions of sub-rule (2) and (3) shall be applicable to the members of such service. (5) Loan and advance shall be given to members of the service posted in Market Committee from this fund with the sanction of Chief Accounts Officer." In view of the statutory liability of the Krishi Upaj Mandi, if the Income Tax Appellate Tribunal has allowed the deduction of aforesaid contribution, no fault is found. So far as the depreciation part is concerned, Explanation 5 to sub-section (1) of Section 32 of the Income Tax Act provides thus:- "Explanation 5.- For the removal of doubts, it is hereby declared that the provisions of this sub-section shall apply whether or not the assessee has claimed the deduction in respect of depreciation in comp....