TaxTMI 
TaxTMI 
2017 (5) TMI 1796
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....missioner of Income Tax (Appeals) is erroneous and contrary to the provisions of law and facts and therefore requires to be suitably modified. It is submitted that it be so done now. 2. The Hon'ble Commissioner of Income Tax (Appeals) has erred in law and in facts in confirming the disallowance of Rs.61,08,550/- being grant given by the appellant to Sabarmati Salt Farmers Society and claimed as deductible expenditure u/s.36(1)(xii) of the Income Tax Act. 3. In any event, the same is allowable as deduction u/s 36(1)(vii) being in the nature of bad debts written off or u/s 37/28 of the Income Tax Act. It is submitted that it be so held now." 3. To adjudicate on this appeal, only a few material facts need to be taken note of. The assessee....
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....fficer with the directions as below: "7. Having heard both the sides, we have carefully gone through the orders of authorities below. We find considerable force in justification of the ld. Counsel of the assessee whether the alleged non-refundable grants given in the previous year, relevant to the assessment year under appeal are from grants received or not needs verification at the end of the Assessing Officer. In this context, we may point out that as per decision of the ITAT, Delhi 'E' Bench in the case of Oil Industry Development Board (supra), relied on by the ld. Counsel of the assessee, expenditure incurred by way of disbursement of grants for objects and purposes authorised by the Act is allowable as deduction under section 36(1)(....
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....nt, evidences as to satisfaction of spent of grant, director's report of recommendation and auditor's certificates was not produced in respect of claim of perspective plan expenditure of Rs.6108550/- in respect of Sabarmati Salt Farmers Society, Dhrangadhra inspite of various and sufficient opportunities of being heard provided. The assessee failed to furnish the sufficient evidences in justification of the claim of Rs.6108550/-. Therefore, the claim of Rs.6108550/- for perspective plan expenditure in respect of Sabarmati Salt Farmers Society, Dhrangadhra was not found to be acceptable and therefore it is disallowed and added in the total income of the assessee." 6. Aggrieved by the disallowance so made, assessee carried the matter....
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....such perspective plan expenditure. The Assessing Officer had provided sufficient opportunities of being heard to the appellant. Even during the course of appellate proceedings, no such documents have been submitted by the appellant. The appellant has only submitted copy of Board's approval dated 23/05/2003. This approval also says that this amount is to be treated as grant from the date of release. Under such circumstances, as per the direction of ITAT, the appellant was required to submit utilization report of such grant. Since, no such fund utilization report is available hence the action of the Assessing Officer of disallowing this amount is upheld and this ground of appeal is dismissed." 7. The assessee is not satisfied by the stan....
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....ee and therefore such disbursements to various cooperative units were not expenditure. The Assessing Officer accordingly disallowed the claim." 10. It was in this context that the Tribunal remitted the matter to the file of the Assessing Officer for primarily ensuring that the grants given by the assessee did not come back to the assessee. The directions of the Tribunal need to be seen in this perspective. Therefore, merely because the assessee has not been able to file the fund utilization report cannot be ground enough to disallow the claim of the assessee. There is no dispute that the amounts were advanced in the course of the business of the assessee, and it has not even been case of the Assessing Officer either, and, there is also no ....