TaxTMI 
TaxTMI 
2017 (5) TMI 1714
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....)-4, Hyderabad, on the above grounds be set aside and that of the Assessing Officer be restored. 6. The appellant craves leave to amend or alter any grounds or add a new ground, which may be necessary". 2. At the time of hearing, the learned Counsel for the assessee submitted that these issues had arisen in the assessee's own case in the earlier A.Ys and the issues had travelled up to the Income Tax Appellate Tribunal wherein relief has been granted to the assessee. He submitted that the CIT (A) has only followed the observations of the Income Tax Appellate Tribunal for giving relief to the assessee and therefore, the order of the CIT (A) should be sustained. 3. The learned DR supported the orders of the AO and submitted that the issues are now pending adjudication before the Hon'ble High Court of Telangana & Andhra Pradesh. 4. Having regard to the rival contentions and the material on record, we find that the assessee, a public sector undertaking, engaged in the mining of Iron ore, Diamonds, Wind Power Generation and sale, filed its return of income for the A.Y 2012-13 on 24.09.2012. During the assessment proceedings u/s 143(3) of the Act, the AO made the fol....
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....ment and accepted by the AO. The detailed calculation of Rs. 21.31 crores charged to P&L A/c (on the basis of Rs. 71.18 crores) was also enclosed and produced before the CIT. Hence, the CIT is wrong in his observation that the estimate of Rs. 21.31 crore is excessively on a higher side and absolutely no realistic or rational basis for such calculation. 12. The CIT is not correct in invoking the provisions of section 263 as we find that the issue is debatable and when two views are possible the AO has taken one view. The Apex Court in the case of Malabar Industrial Co. Ltd. Vs. CIT reported in 243 ITR 83 as well as CIT Vs. Max India Ltd. reported in 295 ITR 282 has held that when there are two views possible and the AO has taken one view, the order of the AO cannot be considered as erroneous and hence the CIT cannot exercise revisional power u/s 263. As pointed out above, the provisions for an accrued existing liability, even though, the actual expenditure may take place at a later date, is an allowable deduction and the CIT erred in treating it as an unascertained liability. Therefore, we set aside the order of the CIT passed u/s 263 and the order of the AO is restored." ....
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....ions, the same cannot be allowed. As rightly held by the CIT(A) in A.Y. 2008-09, ascertainability of liability is to be ascertained year-wise. Therefore, to that extent, following the Coordinate Bench decision, we direct the assessee to furnish the relevant data to the A.O. towards the mines closure obligation and A.O. is directed to verify and allow the amount accordingly. Subject to the above observations, the ground No.2 is considered as allowed for statistical purposes." 21. In this view of the matter, following the consistent view taken by the Tribunal in assessee's own cases for other years noted above, we hold that the mine closure obligation is not a contingent liability but an ascertained liability. Since the quantum of such ascertained liability has to be determined year-wise, as observed in the order for assessment year 2010-11, extracted above, we direct the assessee to furnish the relevant data to the Assessing Officer towards mines closure obligation. The Assessing Officer shall verify such data and recompute the disallowance, if any, warranted, in accordance with law and after giving reasonable opportunity of hearing to the assessee. Assessee's groun....
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....od of lease cannot be denied to the assessee for the simple reason it being intangible asset has been written off which pertains to land being a intangible asset. It is nobody's case that the land either belonged to the lessee or to the Government. This simply indicates that a depletion of the land against the payment of premium it was leased has to be claimed after capitalization thereof by the assessee which is for the purpose of its main business. All expenses are incurred for the purpose of business and are incidental to the holding of rights were claimed u/s.32(1)(ii) being the license to carry out the mining therefore could not be denied insofar as the Government and the lessee are in control of the asset. The definition of depreciation therefore has been misconstrued for the purpose of allowing deduction by the Assessing Officer and the learned CIT(A) in holding a view on the promulgation of Section 32(1)(ii) with effect from the year 1998-99 which has been further amended i.e. Assessment Year 2003-04. In this view of the mater, we are inclined to hold that the assessee is entitled to depreciation as charged to the P & L account in accordance with its business exigencies....
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.... in the following manner: 35. We have considered rival submissions and perused the record. We find that the issue in dispute is squarely M/s. National Mineral Development Corporation Limited, Hyderabad covered by the decision of coordinate bench in assessee's own case for AY 2005-06 in ITA No. 1791/Hyd/2008 dated 30/09/2009 wherein it has been held as follows: "14. We have considered the rival submissions on either side and also perused the material available on record. No doubt the assessee incurred an expenditure of Rs. 5,00,00,000/- as contribution for establishing a medical college. The fact that the assessee is having a mining unit and a steel plant in Chhattisgarh is not dispute. T he objection of the Department appears to be that the medical college was located a t a distance of 16 km s. And the asses see, instead of providing relief to the affected people, directly incurred the expenditure for establishing the medical college. The fact remains that one of the conditions for contributing the money was to give free medical treatment to the Adivasis who were affected by the asses see's project in the locality. Moreover, the employees of the a....