TaxTMI 
TaxTMI 
2025 (2) TMI 1933
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....cted for scrutiny and notice u/s 143(2) of the Act was issued. The AO after hearing the representative of the assessee completed the assessment, assessed income of Rs. 3,77,59,050/- by making additions/disallowance under various heads i.e. on nursery utilization, cess on green leaf, application of section 14A of the Act, deduction claimed u/s 80IE of the Act and travelling and conveyance. 5. Aggrieved by the said order the assessee preferred an appeal before the Ld. CIT(A) wherein the appeal of the assessee has been partly allowed as the Ld. CIT(A) has allowed the appeal of the assessee on the disallowance of expenditure towards nursery utilization, disallowance of cess of green leaf, disallowance u/s 14A of the act, disallowance of claim of deduction u/s 80IE of the act estimated profit out of green leaf purchase, capital loss incurred on sale of Govt. security and partly allowed the disallowance of expenditure towards travelling and conveyance and disallowance of expenditure towards subscription and donation. Being aggrieved and dissatisfied the impugned order department/revenue has preferred the present appeal. 6. The Ld. Counsel appeared on behalf of the department cha....
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....eous and liable to the set aside. The Ld. Counsel has submitted that the assessee incurred an amount of Rs. 23,70,982/- in relation to the travelling and conveyance expenses for promotion of the business activities. The said amount has been incurred wholly and exclusively for the purpose of business hence, deductible u/s 37(1) of the Act. The prayer of the ld. Counsel for the assessee is that his application under Rule 27 shall be treated to be an additional issue raised by the assessee in disposing of the appeal of revenue. 8. The Ld. D.R did not raise any objection if the issue is to be adjudicate by the tribunal. 9. Upon hearing the submission of the counsel of the respective parties, we first of all took up the issue raised by the assessee i.e. Disallowance of expense towards travelling and conveyance. In this context, first of all we have perused the order of Ld. CIT(A) and find that the Ld. CIT(A) after considering the submission of the AR and going over the supporting documents filed in this regard has held thus: 9.2 I have considered the submission of the AR of the appellant and I have gone through all the supporting documents filed in this regard. On verifyi....
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.... nature of capital expenditure or personal expenses of the assessee), laid out or expended wholly and exclusively for the purposes of the business or profession shall be allowed in computing the income chargeable under the head "Profits and gains of business or profession". On perusal of the above provision, it is clear that, in order to qualify for deduction under section 37 of the Act, the expenditure should satisfy the following conditions: * Expenditure should not fall within the ambit of between Section 30 to 36 of the Act * Expenditure should be incurred or expended wholly and exclusively for the purposes of the business or profession. * Expenditure should not be of personal nature * Expenditure should not be of capital nature." 12. It is pertinent to mention herein that in the instant case the assessee submits that it has incurred foreign travelling expenditure towards travelling of its directors / employees to foreign countries to explore business activity. The ld. Counsel has placed reliance on the decision of Hon'ble Supreme Court in the case of CIT vs. Delhi Safe Deposit Co. Ltd. [1982] 133 ITR 756 (SC) and the decision of ....
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....ts of the case, documentary evidence placed by the assessee and order of Ld. CIT(A), we are in this view that the claim of the assessee is bona fide and genuine one, hence,we allow this issue in favour of the assessee directing the AO to delete the additional disallowance made in relation to travelling and conveyance expenses. Accordingly, the additional issue raised by the assessee by filing an application under Rule 27 of the Tribunal Rules are hereby allowed. 15. Now coming to the department's appeal, we find that the Ld. CIT(A) in allowing the appeal of the assessee has discussed the facts of the case and judicial pronouncement passed. We are taking grounds one by one. 16. (i) Disallowance of expenditure towards nursery utilization: In this context, we have gone through the order of Ld. CIT(A) and find that the claim of the assessee against this issue for AY 2011-12 has already been accepted by the revenue and no addition was made previously. In the present case, the amount of nursery utilization expenses was not spent towards raising or maintenance of nursery but in fact it was spent towards replacement of useless or dead plants by re-planting the bush within the plan....
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....tant to mention herein that the matter pertaining to disallowance u/s 14A of the Act has been decided in favour of the assessee during AY 2010-11 as well as AY 2011-12 by the Ld. CIT(A). The Ld. CIT(A) in allowing this issue in favour of the assessee has held thus: Suo Moto Disallowance In this regard, it is pertinent to note that the Appellant suo-moto disallowed an amount of Rs. 9,200 under section 14A of the Act as actual expenditure incurred in relation to earning of said exempted income. In view of above, if the Ld. AO was not satisfied with the claim of the Appellant in relation to disallowance under section 14A of the Act, then as per provisions of section 14A(2) of the Act, a notice should have been issued to the Appellant to provide basis of computation and an opportunity provided to place on record all the back-ups before proceeding to make additional disallowance in the assessment order. Accordingly, the act of the Ld. AO was grossly in violation of principles of natural justice. Entire exempt income has been earned by the Appellant on the investments made out of own funds: It is pertinent to note that the entire exempt income....
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....at the AO has not recorded any positive dissatisfaction in the matter, before involving section 14A. In view of appellant's submission that there was no brought forward loans and fresh investment made during the year, and that the interest payment were on the working capital only, the disallowances made by the AO appear to be unsustainable. 7.3 With that view of the matter, I find that the disallowance made suo motto by the appellant were adequate to cover the matters relating to section 14A. In view of the ratio of various judgments both of the jurisdictional High Court as well as of other high courts and ITAT Benches and the past history of this ground of appeal in the assessees own case, where this ground of appeal was deleted, and considering the ld. AR/ appellant's submission that there was no fresh investment during the year and interest payments were only on working capital loan utilized exclusively for the business, this addition of Rs. 51,641/- made under section 14A of the Act cannot be sustained, and is order to be deleted." Keeping in view of our discussion we find no infirmity in the order of Ld. CIT(A) on this issue. (iv) The next issue disallowance cla....
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....ed herewith as Annexure 13. * With regard to the DG set (Item No. 3 of the above given table) amounting to Rs. 1,777,234, the Appellant wishes to submit that the said DG set was commissioned by the vendors on 31 March 2010. A copy of the installation check-up report and commissioning report is attached herewith as Annexure 14. * With regard to pass coal heater (Item No. 4 of the above given table) amounting to Rs. 1,402,576, the Appellant submits that the same was commissioned on 30 March 2010 by the vendor. A copy of the confirmation provided by the vendor is attached herewith as Annexure 15. * With regard to CTC machinery (Item No. 5 of the above table) amounting to Rs. 993,198, the Appellant wishes to submit that the same was received in the garden on 27 March 2010 and installed on 30 March 2010. A copy of the confirmation provided by the vendor in this regard is attached herewith as Annexure 16." The Ld. CIT(A) in its order has held thus: "8.2 I have duly considered the submission of the appellant and evidences on record in the forms of Annexure- 6 to 11 towards purchases and installation of new machineries in question as well as remand re....
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....जिल, P-7 चौरगीसà¥à¤•à¥à¤µà¥à¤¯à¤¾à¤°, कोलकाता - 700 069 P-7. CHOWRINGHEE ROAD, 8TH FLOOR, KOLKATA - 700 069, PERia .: 23. 08.2024 equiNo. JCIT(in-situ)Circle/4/1)/Kol/Misc:/2024-25/ 2 / 3 To The Assistant Register, Income Tax Appellate Tribunal, Kolkata 225/C. A.J.C. Bose Road, Kolkata 700020. महोदय/ SIr. Faz/ Sub: Condonation petition for delay in filing 2nd appeal in the case of M/s Sublime Agre Ltd. [PAN: AAECS1804P] for the A.Y. 2012-13- Matter regarding. Kindly refer to the above. The undersigned is submitting the details of delay in filing appeal for your kind consideration. Date-wise details are given below; 13.01.2023 - Date of online order by the L.d. CIT (A). NFAC, Delhi with direction. 07.11.2023 - Date of Appeal Scrutiny Report sent to PCIT with comments of AO and grounds of appeal, 22.11.2023 - Date of receipt of certificate for filing 200 appeal from PCIT-2, Kolkata office. 08.12.2023 - Date of filling appeal in ITAT through online mode. In this regard, it is to state before your honour that total de....
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....t. 1976 1.90,291 0 The West Bengal Primary Education Act, 1973 95.145 TOTAL (RSS) 2,85,436 19.15,046 Relating to Assam Doomni T.E. Copies of the Retums and paid challans are enclosed and marked Annexure - 7. 7. 8. Details of Nursary and its utilisations during the year were as under: Particulars Doomni T.L. Assam Dagapur T.E. West Bengal Shreebash T.E. West Bengal Total (Rs.) Opening Balance 12,74.556 4.99.313 2.06,690 19.80.559 Expenses during the year for maintenance 10.39,995 2.91,855 86.167 14.18.017 Utilised for infillings during the year 9.57,825 3.10.560 1.07.519 13.75.904 Closing Balance carried as Inventories 13,56.726 4.80,608 1.85,338 20.22.672 Further details are enclosed and marked Annexure - 8. We shall be pleased to submit any further details/documents as and when required by you for the purpose of Assessment. Thanking You. Yours truly. For Sublime Agro Limited (G. Jalan) Whole-time Director Enclosures: As stated. Document 3 - --- --- --- - SUBLIME AGRO LIMITED H.O .: Lords, 2nd Floor, 7/1. Lord Sinha Road, Room No. 201-203 KOLKATA - 700 071 DOOMNI TEA ESTATE PO. - BOOMNI = 781 373 Out = BARB....