2022 (1) TMI 338

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....imilar, therefore, both the appeals are clubbed together, heard and are decided by passing a common order. For appreciation of facts the appeal for AY 2009-10 in appeal No. 151/SRT/2020 for AY 2009-10 is treated as 'lead' case. The Revenue has raised the following grounds of appeal:- "(i). On the facts and circumstances of the case and in Law, the Ld. CIT(A) has erred in deleting the disallowance made by the AO of Rs. 18,16,608/- whereas the AO on examination/analysis of the deduction claimed u/s. 80JJA of the Act has disallowed the same. (ii). On the facts and circumstances of the case and in Law, the Ld. CIT(A), Surat ought to have upheld the order of the Assessing Officer. It is, therefore, prayed that the order of the Ld. CI....

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....on of Rs. 18,16,608/- under section 80JJA of the Act and added income of assessee in the assessment order passed under section 143(3) r.w.s. 147 on 16.10.2015. 3. Aggrieved by the addition and re-opening, the assessee filed appeal before Ld. CIT(A). Before Ld. CIT(A) the assessee filed detailed written submission as recorded in para-7 of his order. In the submission, the assessee objected against the validity of re-opening and on merit the assessee claimed that its the case is covered by the decision of Hon'ble Bombay High Court in the case of CIT Vs. Smt. Padma S. Bora [2013] 355 ITR 368 (Bom). The Ld. CIT(A) after considering the submission of assessee deleted the addition by following the decision of Smt. Padma S. Bora (supra) and a....

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....d. AR of the assessee by referring the contents of decision in Padma S Bora (supra) submitted that assessee in that case was also using the similar raw material i.e., bagas, which is waste of sugar factory for manufacturing bio-mass. The Assessing Officer disallowed the deduction under section 80JJA. However, on appeal before Tribunal the assessee was allowed relief. The Revenue filed appeal before Hon'ble High Court wherein the appeal of Revenue was dismissed. The Ld. AR of the assessee accordingly submits that the issue on merit is also squarely covered by the decision of Hon'ble Bombay High Court in the case of Smt. Padma S. Bora (supra). 7. In further reply, to the submission of Ld. AR of the assessee, the Ld. Sr. DR of the Rev....

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....sessee. We find that bagasse is a waste of the sugar factory. This waste is a bio-degradable waste and the same is collected on consideration by the respondent assessee from the factory. There could be no universal definition of the word "waste". The term waste has to be understood contextually i.e. place where it arises and the manner in which it arises during the processing of some article. The fact that sugar industry also regards Bagasse as waste is evident from Circular dated 4/2/2006 issued by the Sugar Commissioner, Maharashtra State, Pune. Besides the ITC classification of the Exim policy also classifies bagasse as a waste of sugar industry under Chapter 23 Heading 23.20 thereof. Further, the Central Excise Tariff Act 1985 also rega....