ITAT Rajkot Judgments — January 2019

The Tribunal allowed the deduction claims under Section 80IA for port development and windmill power generation, and also allowed depreciation on expenses related to windmill installation. However, it dismissed the assessee's appeal on outstanding amounts and personal elements in staff welfare/travel expenses.

The Tribunal restored the matter to the CIT(A) for fresh adjudication, subject to the assessee paying a cost of Rs. 10,000/- to the Income Tax Department. This was due to the assessee's negligent approach in pursuing the matter.

The Tribunal restored the matter to the Assessing Officer for fresh adjudication. This was done in the interest of justice, as the property was claimed to belong to a HUF and the Revenue did not object to remitting the matter.

The Tribunal allowed the deduction claims under Section 80IA for port development and windmill power generation, and also allowed depreciation on expenses related to windmill installation. However, it dismissed the assessee's appeal on outstanding amounts and personal elements in staff welfare/travel expenses.

The Tribunal, noting the absence of the assessee and the lack of an adjournment request, decided to dismiss the appeal in limine. The assessee retains the liberty to seek recall of the order if sufficient cause for non-appearance is shown.

The Tribunal held that Section 41(1) applies when a trading liability allowed as a deduction is remitted or ceases. In this case, the liability was shown in the books, not written off, and the contractor confirmed the outstanding liability and its subsequent settlement. Therefore, the addition was deleted.