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2015 (3) TMI 927 - ITAT AHMEDABADInclusion of CENVAT credit for valuing the closing stock - CIT(A) deleted the addition - Held that:- CIT(A) while deleting the addition has noted that if adjustment on account of CENVAT credit is made to the closing stock then corresponding adjustment will have to be made to the opening stock, purchases and sales and on the basis of statement annexed to the tax audit report, he has given a finding that there would be no impact on the final profit. CIT(A) has further relied on the decisions in the case of Bharat Bijlee vs. ACIT [2011 (3) TMI 1012 - ITAT MUMBAI] and Ashwin Shah vs. ACIT [2009 (12) TMI 708 - ITAT AHMEDABAD]. Before us, Revenue has not brought any material on record to controvert the findings of the CIT(A) nor has brought any contrary binding decision in its support. We therefore find no reason to interfere with the order of CIT(A) - Decided against revenue. Disallowance of employee’s contribution to ESIC - CIT(A) deleted disallowance - Held that:- In view of the undisputed fact that the Employees share of contribution of ESIC was paid after the prescribed due date, and following the decision of Hon'ble Gujarat High Court in the case of Gujarat State Road Transport Corporation (2014 (1) TMI 502 - GUJARAT HIGH COURT), and in the absence of any contrary binding decision, we are of the view that the AO was justified in disallowing the belated payments - Decided in favour of revenue. Disallowance made u/s. 14A r.w.r. 8D - Held that:- Considering the fact that the Assessee has stated that investments have been made in earlier years and the disallowance u/s. 14A is in excess of the tax free income. We therefore set aside the issue to the file of AO to re-examine the issue as relying on Joint Investments Pvt Ltd Versus Commissioner of Income Tax [2015 (3) TMI 155 - DELHI HIGH COURT] and thereafter decide the issue in accordance with law and after giving reasonable opportunity of hearing to the assessee. - Decided in favour of assessee for statistical purposes. Disallowance of travelling expenses - AO while disallowing the expenses has noted that the expenses were incurred on account of trip by cruise ship by director and his family. The aforesaid finding of AO has not been contorverted by ld. A.R. We find that CIT(A) while restricting the addition has noted that AO while disallowing the expenses had not even mentioned the countries visited by the directors nor had analyzed the expenses. At the same time, he also noted that assessee has failed to establish that the entire expenditure was wholly and exclusively incurred for the purpose of business - Held that:- Before us, ld AR has submitted that the disallowance in the year under consideration is on a higher side and be restricted to 25% as made by AO in subsequent years. On perusing the orders passed by AO u/s. 143(3) of subsequent years, we find that the issue of trip by cruise was not in those years and therefore we do not find force in the submission of ld. AR to restrict the disallowance at 25%. It is also a fact that against the partial relief given by ld. CIT(A), Revenue is not in appeal. Before us, Ld. AR has not brought any material to controvert the findings of CIT(A) and therefore we find no reason to interfere with his order and thus this ground is dismissed. - Decided against assessee.
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