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2014 (1) TMI 951 - ITAT AHMEDABADDisallowance made u/s 36(1)(iv) of the Act – PF contribution – Held that:- The decision in INCOME TAX OFFICER Versus LKP SECURITIES LTD [2013 (11) TMI 359 - ITAT MUMBAI] followed - The payment/s made within the grace period as allowed by virtue of any circular, order, etc. would be eligible for deduction - The language of the provision accords primacy to not only the relevant Act, but also to any circular, order, notification, etc. issued thereunder - Two, a 'due dale' - the benefit of the 'grace period' could not be disallowed, and which would rather bring the two enactments in harmony - The AO is directed to allow deduction u/s. 36(1)(iv) where any payment is made within the grace period. Disallowance made on account of marketing and field expenses – Held that:- All these expenses were incurred in cash - No further details of these expenses were made available unlike traveling expenses for directors and field staff where full details were maintained by assessee - CIT(A) was therefore of the view that when entire tour expenses of directors and field staff were booked under the head of traveling expenses, there was no justification for incurring these expenses - assessee could not give any cogent reason for claiming these expenses – the order of the CIT(A) upheld – Decided against Assessee. Disallowance of interest on loans and advances made for non-business purpose – Held that:- The assessee contended that the he was having interest free funds at its disposal, no disallowance of interest should have been made by AO - Before Ld. CIT(A) also this argument was advanced on behalf of the assessee, the same was however not accepted by him by observing that assessee has failed to substantiate this claim with any facts and figures – the contention of the assessee deserves due consideration and for this purpose, the matter is restored back to the file of AO for fresh adjudication – Decided partly in favour of Assessee.
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