Case Law Details
Eastern Coalfields Ltd. Vs DCIT (ITAT Kolkata)
We note that the assessee has made a claim of deduction regarding donation made to the tune of Rs. 27,27,000/- but the AO disallowed the claim. On appeal, the Ld. CIT(A) has given partial relief by allowing 50% of expenditure claimed as donation. We note that on similar issue i.e. donation/expenditure claimed by an assessee in respect of donation given to the local clubs during Durga Puja etc. the Hon’ble Calcutta High Court in CIT vs. Bata India Ltd. in 201 ITR 884 (Cal) held that the same was an allowable expenses. However we note that in the present case in hand, since the assessee could not submit materials/evidence before the authorities below in respect of its claim of donation given to the local clubs, we direct the assessee to submit materials to substantiate the fact of donation it gave to local clubs/bodies during festival/sports in order to have good relations with them for smooth running of its business. And if the assessee produce evidence/material as directed by us, the AO may verify the same and allow balance 50% of the expenses which are shown to have been made by the assessee to the local clubs for smooth functioning of its business of extraction of coal and its transportation. With the aforesaid direction this issue is set aside back to the file of AO and the AO is directed to pass a fresh order on this issue after verification as observed supra.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
These are appeals preferred by the assessee against the order of Ld. CIT(A)-Asansol dated 14.02.2020 for AYs 2010-11 & 2011-12 respectively.
2. At the outset the Ld. A.R. of the assessee Shri Arvind Agarwal brought to our notice that though the assessee had preferred an appeal against the reopening of the assessment u/s 147/148 of the Income Tax Act, 1961 (hereinafter referred to as the Act), the sole issue involved on merits is against the action of the Ld. CIT(A) in sustaining the disallowance of additional depreciation to the extent of Rs. 1,96,37,620/- being 20% of the total claim of additional depreciation of Rs. 9,81,88,100/-. So first we will deal with the merits of this claim of the assessee which was denied by the AO/Ld. CIT(A).
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