COMMISSIONER OF INCOME TAX Vs. GMM CO. LTD.

JUDGEMENT

(1.) WE have heard Mr. Dipak Som, learned senior advocate appearing for the appellant. We have also perused the order passed by the CIT(A) as well as the order of the learned Tribunal. It appears to us that most of the grounds which were tried to be made out here were not pressed before the CIT(A) by the Department. The assessee is a company engaged in the business of agency/trading relating to earth moving equipments, manufacturing of diesel generating sets etc. The AO made addition in respect of cess paid on electricity, payment made to the insurance company, payment made on account of computer software maintenance, prior period expenses, house property income and depreciation in respect of furniture given on hire.

(2.) BEING aggrieved, the assessee filed an appeal before the CIT(A). The CIT(A) deleted all those additions which were made by the AO. The Tribunal held that the assessee paid the cess during the year and claimed that such payment of cess is allowable under s. 43B in computing the total income of the assessee. Subsequent thereto, it appears that all the points which were canvassed before the Tribunal, the Tribunal duly dealt with those points and on the basis of the facts and materials placed before it, the Tribunal came to the finding in favour of the assessee. The issue in question has also been decided in favour of the assessee for the asst. yr. 2004 -05 by an order so passed by the learned Tribunal. The payment in respect of interest to LIC was also dealt with by the learned Tribunal and after hearing the parties, the learned Tribunal also found that the matter has been amicably settled and the assessee thereafter paid Rs. 19,16,343 by cheque.

(3.) IN respect of the other point concerning disallowance under s. 40(a)(i) of the IT Act, 1961, the learned Tribunal relying on the order of the CIT(A) opined in favour of the assessee. The said opinion of the CIT(A) is reproduced hereunder :