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      (a)          Under Loading Charges          : ₹ 121,08,01,000/-

      (b)          Demurrage Charges              : ₹ 23,77,00,000/-

3. Under-loading charges: The Assessing Officer in his order under Section 143(3) of the Act dated 24/12/2019 for the assessment year under consideration, found that the BCCL, the assessee, has claimed expenses in its Profit & Loss Account under the head "under-loading charges" amounting to ₹121,08,1,000/-. Accordingly, notice under Section 142(1) of the Act was issued to the assessee to justify these expenses. In response to that the assessee mentioned that 'under-loading charges' has not been paid to the railway authorities by the BCCL but was actually paid by the coal buyers, who engage the railway wagon for the transportation of coal. As per the terms of Fuel Supply Agreement (FSA) between the BCCL and the coal buyers this under-loading charges are being adjusted in the sales bill raised by the BCCL.

The ld. Counsel then argued that as per the above conditions mentioned in the said FSA, the assessee company is bound to discharge its commitment of paying under-loading charges to Railway authorities and claimed that these expenses, being borne by the assessee, is a kind of reimbursement which is finally, finally adjusted in the books of the assessee. Thus, this expenditure cannot be termed as penal in nature.

It was further submitted by the AR that this issue of 'under loading charges' was a subject matter of disputes before the Hon'ble ITAT, Nagpur which decided these issues in its judgment dated 10/08/2019 in ITA No. 475/Nag/2007 for A.Y. 2004-05 in the case of Western Coalfields Limited Vs DCIT, Range-2, Nagpur in favour of assessee. The same Hon'ble ITAT Nagpur Bench vide its order dated in ITA No. 289 and 290/nag/2006 dated 30/06/2009 for A.Y. 2002-03 and 2003-04 (supra.) also decided the issue of under-loading charges in favour of the assessee. While allowing the appeal of the appellant on the issue of under loading charges, in para 7 of the judgement, the Hon'ble ITAT has mentioned para 25 of the order of the ITAT dated 30/06/2009. The relevant part of the order is reproduced as below:

14. Aggrieved by the order of ld. CIT(A), the revenue has filed this appeal before this Tribunal.

15. During the course of hearing before us, the revised grounds of appeal were filed by the revenue as under:

"(i) Whether on the facts and in the circumstances of the case and in law, Ld. CIT(A) was correct in holding that the under-loading charges are not penal in nature even though as per provisions of Indian Railway Act, 1989, the under-loading charges are punitive charges and deleting the disallowance of ₹ 1,48,12,86,000/- claimed as under loading charges during the year under consideration which is not covered u/s 37(1) of the Income-tax Act, 1961 (the Act), 1961.

16. During the course of hearing, the learned Authorised Representative of the assessee has reiterated the same argument as raised with regard to under- loading charges and submitted that both these issues of under loading charges and demurrage charges were subject matter of disputes in the judgment dated 10/08/2019 of Hon'ble ITAT, Nagpur Bench in ITA No. 475/Nag/2007 for A.Y. 2004-05 in the case of Western Coalfields Limited Vs DCIT, Range-2, Nagpur, has decided all the identical issue of under loading charges and Demurrage charges which was decided in favour of assessee by the Hon'ble ITAT Nagpur Bench vide order dated in ITA No. 289 and 290/Nag/2006 dated 30/06/2009 for A.Y. 2002-03 and 2003-04.