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2013 (10) TMI 975 - ITAT AHMEDABADAllowability of rate of interest in case of loan from related party – Held that:- There is no thumb rule of allowability of interest rate. It depends upon case to case and business expediency. Therefore, 20% rate reasonable for A.Y 09-10 for the related parties - Decided the issue in the light of peculiar facts and circumstances of the case and it shall not became Precedent for all cases. In this case, since company and the depositors were assessed at highest tax rate and no loss of revenue. Deposit from outside parties is very meager as compared to related party and also business turn over and profit have increased substantially and there is no finding of lower authorities that the amount of loan received from loan creditors were not used for business purposes – Decided in favor of Assessee. Addition on account of late payment of Provident fund account – Held that:- assessee had paid this amount on 25.06.2007 relevant to month of May, 2007 before due date of return file on 30.09.2008. As various Courts held if the payment is made before due date of return filed, is allowable expenditure – Decided in favor of Assessee. CENVAT Credit to be included in the closing stock u/s 145A of the Act – Held that:- As per Apex Court judgment in the case of ACIT vs. Torrent Cables Ltd.[ 2012 (11) TMI 190 - SUPREME COURT], wherein it was held that assessee had been following the net method of valuing the closing stock – Following the judgment, CENVAT not to be included in the closing stock. Allowability of excise duty as deduction u/s 43B of the Act in the year under consideration – Held that:- Assessee had paid excise duty on closing stock at the time of removal of goods from the factory before due date of filing of return. Accordingly, such excise duty is allowable as deduction u/s. 43B of the IT Act.
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