Dy. CIT v. NMDC Ltd. - Taxpublishers.in

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REFERRED Shyam Sel Ltd v. Deputy CIT 2016 TaxPub(DT) 3673 (Cal-HC)

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The Tax Publishers2020 TaxPub(DT) 1268 (Hyd-Trib) IN THE ITAT, HYDERABAD BENCH P. MADHAVI DEVI, J.M. & A. MOHAN ALANKAMONY, A.M. Dy. CIT v. NMDC Ltd. ITA No. 1022/Hyd/2019 19 February, 2020 Against Revenue Assessee by : Laxmi Niwas Sharma Revenue by : T.H. Vijaya Laxmi, DR ORDER *P. Madhavi Devi, J.M.* This is revenues appeal for the assessment year 2015-16 against the order of the Commissioner (Appeals)-4, Hyderabad, dt. 22-3-2019. The grounds raised by the revenue are as under: 1. The learned Commissioner (Appeals) erred in deleting the addition made towards Disallowance of expenditure toward Special Purpose Vehicle without appreciating the expenditure is punitive in nature and is not allowable under section 37 of the Act. 2. The learned Commissioner (Appeals) erred in deleting the addition made towards mine closure obligation when the same is not an ascertained liability. 3. The learned Commissioner (Appeals) erred in deleting the addition made towards Disallowance of expenditure towards Special Purpose Vehicle without appreciating that the assessee itself vide Letter, dt. 7-3-2016 has submitted that the assessee company falls under Category B of the Mines for which mining was permitted to be continued with payment of penalty/ compensation by the assessee and that the expenditure is punitive in nature and is not allowable under section 37 of the Act. 4. Any other ground that may be raised at the time of hearing. 2. Brief facts of the case are that the assessee company which is engaged in the business of Mining of Iron Ore, Diamonds etc., and generation of Wind Power, filed its original return of income for the assessment year 2015-16 on 29-9-2015 admitting total income at Rs. 9765,78,96,000 and book profits under section 115JB at Rs. 9802,24,54,613. Subsequently, it filed a revised return of income on 23-11-2016 admitting total income at Rs. 9942,41,00,630 and book profit under section 115JB at Rs. 9802,24,54,613 stating that there is a mistake in the original computation of total income. In the computation of total income, the assessee company claimed deduction under section 80-IA of the Act amounting to Rs. 481,26,169. The return was initially processed under section 143(1). SUBSCRIBE FOR FULL CONTENT OR Try Reload the Page

The Tax Publishers2020 TaxPub(DT) 1268 (Hyd-Trib)

IN THE ITAT, HYDERABAD BENCH

P. MADHAVI DEVI, J.M. & A. MOHAN ALANKAMONY, A.M.

Dy. CIT v. NMDC Ltd.

ITA No. 1022/Hyd/2019

19 February, 2020

Against Revenue

Assessee by : Laxmi Niwas Sharma

Revenue by : T.H. Vijaya Laxmi, DR

ORDER

P. Madhavi Devi, J.M.

This is revenues appeal for the assessment year 2015-16 against the order of the Commissioner (Appeals)-4, Hyderabad, dt. 22-3-2019. The grounds raised by the revenue are as under:

1. The learned Commissioner (Appeals) erred in deleting the addition made towards Disallowance of expenditure toward Special Purpose Vehicle without appreciating the expenditure is punitive in nature and is not allowable under section 37 of the Act.

2. The learned Commissioner (Appeals) erred in deleting the addition made towards mine closure obligation when the same is not an ascertained liability.

3. The learned Commissioner (Appeals) erred in deleting the addition made towards Disallowance of expenditure towards Special Purpose Vehicle without appreciating that the assessee itself vide Letter, dt. 7-3-2016 has submitted that the assessee company falls under Category B of the Mines for which mining was permitted to be continued with payment of penalty/ compensation by the assessee and that the expenditure is punitive in nature and is not allowable under section 37 of the Act.

4. Any other ground that may be raised at the time of hearing.

2. Brief facts of the case are that the assessee company which is engaged in the business of Mining of Iron Ore, Diamonds etc., and generation of Wind Power, filed its original return of income for the assessment year 2015-16 on 29-9-2015 admitting total income at Rs. 9765,78,96,000 and book profits under section 115JB at Rs. 9802,24,54,613. Subsequently, it filed a revised return of income on 23-11-2016 admitting total income at Rs. 9942,41,00,630 and book profit under section 115JB at Rs. 9802,24,54,613 stating that there is a mistake in the original computation of total income. In the computation of total income, the assessee company claimed deduction under section 80-IA of the Act amounting to Rs. 481,26,169. The return was initially processed under section 143(1).

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