ITAT Nagpur Judgments — May 2019

RADHEY MINERALS LTD.,NAGPUR vs ACIT-CENTRAL-CIRCLE-2(3), NAGPUR

ITA 185/NAG/2014[2010-11]Status: Disposed29 May 2019AY 2010-11Remanded

The Tribunal found that complete facts were not emerging to adjudicate the issue of expenditure disallowance for coal transactions and the addition for share premium. Therefore, both issues were restored to the CIT(A) for de-novo adjudication.

OMPRAKASH BAPPUAPPA KHAKE,PUNE vs ACIT-AKOLA-CIRCLE, AKOLA

ITA 288/NAG/2014[2009-10]Status: Disposed24 May 2019AY 2009-10Dismissed

The Tribunal held that setting up a distillery constituted diversification into a new line of business, unconnected with the assessee's existing service industry. Therefore, interest expenditure on borrowed capital for acquiring capital assets at the pre-commencement stage is not allowable as revenue expenditure.

ACIT- CIR.-1, NAGPUR vs SHRI MANMIT ELECTRICAL INFRASTRUCTURE, NAGPUR

ITA 94/NAG/2015[2011-12]Status: Disposed24 May 2019AY 2011-12Dismissed

The Tribunal upheld the Commissioner (Appeals)'s decision, allowing the deduction. It noted that the nature of work and the legal position remained the same as in previous years where the Tribunal had ruled in favour of the assessee.

SHRI KHANCHAND D. DODEJA,AKOLA vs I.T.O. WARD -1, AKOLA

ITA 335/NAG/2017[2005-2006]Status: Disposed24 May 2019AY 2005-2006Dismissed

The Tribunal held that the assessment proceedings were validly initiated against the assessee as the successor to the partnership firm. On merits, the Tribunal found that the assessee failed to substantiate the source of the cash credits, dismissing the claim of recoveries from debtors.

DY.CIT, CIRCLE-2, NAGPUR vs M/S SUNVIJAY ROLLING AND ENGINERING LTD, NAGPUR

ITA 161/NAG/2018[2015-2016]Status: Disposed24 May 2019AY 2015-2016Dismissed

The Tribunal held that the industrial promotion subsidy received by the assessee is a capital receipt, following its own prior decision. It also held that prior period expenses, where the liability crystallized during the year, are allowable.

ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE-2, NAGPUR vs SANVIJAY ROLLING & ENGG.LIMITED, NAGPUR

ITA 100/NAG/2018[2014-2015]Status: Disposed24 May 2019AY 2014-2015Dismissed

The Tribunal held that the industrial promotion subsidy received by the assessee is a capital receipt, following its own prior decision. It also held that prior period expenses, where the liability crystallized during the year, are allowable.

DY. C.I.T. CIR-.2, NAGPUR vs M/S SANVIJAY ROLLING & ENGINEERING LTD., NAGPUR

ITA 514/NAG/2016[2013-14]Status: Disposed24 May 2019AY 2013-14Dismissed

The Tribunal held that the industrial promotion subsidy received by the assessee is a capital receipt, following its own prior decision. It also held that prior period expenses, where the liability crystallized during the year, are allowable.

THE AKOLA URBAN CO. OP. BANK LTD.,AKOLA vs DY. CIT- AKOLA CIRCLE, AKOLA

ITA 91/NAG/2015[2010-11]Status: Disposed14 May 2019AY 2010-11Partly Allowed

The Tribunal held that investments in Government Securities under the HTM category by banks, including co-operative banks, are eligible for depreciation. The lower authorities erred in treating these as fixed deposits and disallowing the claim.

THE AKOLA URBAN CO OP. BANK LTD,AKOLA vs D.C.I.T. AKOLA CRICLE, AKOLA

ITA 248/NAG/2015[2011-12]Status: Disposed14 May 2019AY 2011-12Partly Allowed

The Tribunal held that investments in Government Securities under the HTM category by banks, including co-operative banks, are eligible for depreciation. The lower authorities erred in treating these as fixed deposits and disallowing the claim.