TaxTMI 
TaxTMI 
TaxTMI 
2023 (6) TMI 877
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....f of unabsorbed depreciation of earlier assessment years. The assessee's case was taken up for scrutiny assessment and made various disallowances and the A.O. determined the total income at Rs. 5,58,77,595/- and raised a demand of Rs. 2,62,73,660/-. 3. Aggrieved against the same, the assessee filed an appeal before Commissioner of Income Tax (Appeals) who partly allowed the assessee appeal by deleting the various disallowances made by the Ld. A.O. 4. Aggrieved against the same, the Revenue is in appeal before us raising the following Grounds of Appeal: 1. Whether on the facts and circumstances of the case and in law, the Ld. C.I.T. (A) erred in deleting the addition of Rs. 1,85,04,494/- on account of grant A Desto received under Sampoorna Gramin Swarojgar Yogna from the Govt. without appreciating the fact that the assessee started its commercial activities much before the receipt of the aforesaid grant, hence the same ought to be treated as revenue receipt. 2. Whether on the facts and circumstances of the case and in law, the Ld. C.I.T. (A) erred in deleting the addition of Rs. 1,85,04,494./-on account of grant received under Sampoorna Gramin Swarojgar Yogna from the Govt. wi....
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....t case, the issue involved for A.Y. 2002-03 is squarely covered by the explanation 10 to section 43(1) of the Act w.e.f. 01-04-1999. 6. Whether on the facts and circumstances of the case and in law, the Ld. C.I.T.(A) was justified in holding that deleting addition of Rs. 1,88,18,927/- being disallowance u/s. 80P(2)(d) of the Act notwithstanding the fact that the interest paid by the assessee to various co-operative banks/ Societies/Bodies exceeded the income earned from its investment with Bank/Co-operative Societies nor the assessee could substantiate the claim that interest bearing funds have not been invested with Co-operative Bank. 7. Whether on the facts and circumstances of the case and in law, the Ld. C.I.T.(A) was justified in deleting the addition of Rs. 1,88,18,927/-, by relying on the decision of Hon'ble Supreme Court of India in the case of Munjal Sales Corpn vs. C.I.T., Ludhiana reported in 168 Taxman 43(SC) and decision of Hon'ble High Court of Bombay in the case of C.I.T. vs. Reliance Utilities & Power Ltd. reported in 178 Taxman 135, without appreciating the facts of the present case is distinguishable from the facts of the said cases, in as much whereas....
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....c) In order to retain the quality of milk up to the international standards, to commission bulk chilling units and SS milk cans. Further this project mainly has following components: a) Induction of animal to the 8PL families - this component w/f| require subsidies from SGSY resources as per the normal pattern of the scheme; b) Vaccination, Health care and Deworming services to the cattle c) Raising green fodder & providing better seed verities for fodder at the individual and community levels; d) Creation of drinking water facilities by digging bore wells to supply drinking water to live-stocks of BPL families; e) Establishing mobile veterinary lab for spot treatment and-provide door step artificial insemination; and f) Bulk chilling facilities and provision of SS cans for milk collection. Further Ministry of Rural Development, Government of India has agreed to financially support this project vide their order no.24015/136/2003-SGSY-1 (Special Project) dated 30th January, 2004 copy of this letter will form part of the MOU. 9. We further observe that work under this project is being carried out regularly and the assessee was required to maintain a separate bank ac....
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....llows: "...7. The fourth ground confirming disallowance of claim of depreciation of Rs. 39,77,276/-on Plant and Machinery received under 70% loan and 30% grant basis. The Id. counsel contended that the Hon'ble ITAT, Ahmedabad in the earlier years has decided the identical issue in favour of the assessee for A.Y. 2002-03 to 2005-06 and 2007-08 to 2008-09 ITA No. 563/Ahd/2011 and 567/Ahd/2011. He further stated that the Hon'ble ITAT has also decided the issue in assessee's own case for A.Y. 2009-10 in ITA No. 1337/Ahd/2013. The Id. D.R. relied on the order of the Id. CIT(A). After hearing both the parties and perused of material on record, we find in ITA Nos. 1336 and 337/Ahd/2013 for A.Y. 2007-08 and 2009-10. the Hon'ble ITAT has decided the identical issue in favour of the assessee. Keeping reliance on the decision of the Hon'ble ITAT Ahmedabad, we delete the addition confirmed by the Id. CIT(A)." 8.1. Respectfully following the above decisions of the Co-ordinate Benches, we hereby confirm the order passed by the Ld. CIT(A) on the claim of depreciation on Grant portion. Thus the Ground Nos. 3, 4 & 5 filed by the Revenue are hereby dismissed. 9. Regarding Gro....