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2014 (4) TMI 1074 - AT - Income TaxAddition in the closing stock of Press mud - CIT(A) deleted the addition - Held that:- This issue is covered in favour of the assessee by the Tribunal decision in assessee’s own case for assessment year 2008-09. We decline to interfere in the order of CIT(A) - Decided against revenue. Addition in the closing stock of baggase - CIT(A) deleted the addition - Held that:- In the statement of facts on page No. 2 filed by the Assessing Officer, it is stated that opening stock of baggase has been shown at 4,400 quintals and after deducting sales of 5,107 quintals, closing stock of baggase remains at 3,262 quintals. The Assessing Officer has made addition on account of closing stock but he has not given any credit for opening stock, which was not valued by the assessee since the assessee is following this system of accounting that closing stock of baggase is not valued by it. It is true that the system adopted by the assessee is faulty and the assessee should have valued the closing stock year after year but since inception, the assessee is following this system and the same was accepted by the Department and therefore, to make any change in the system, we have to give effect in value of opening stock also. Considering the entire facts and smallness of amount involved, we feel that this defect in the system of accounting followed by the assessee can be ignored because the amount involved is small and to rectify the same, change will be required in several years. We, therefore, decline to interfere in the order of CIT(A) on this issue. - Decided against revenue. Addition on account of molasses in Kachha pit - CIT(A) deleted the addition - Held that:- It is stated by the Assessing Officer on page No. 2 of the statements of facts that the assessee has valued the closing stock of molesses weighing 11,205 quintals @Rs.11/- per unit, which is substantially low in comparison to molasses kept in tanks. The claim of the assessee is that the molasses stored in Kachcha pit is not saleable. This is by now a settled position of law that valuation of closing stock can be at cost or market price, whichever is lower. This fact has to be accepted that molasses stored in Kachcha pit is defective and is not comparable with the molasses stored in tanks. Hence, the addition made by the Assessing Officer is not justified in the facts of the present case.- Decided against revenue. Addition on account of bond money payable - CIT(A) deleted the addition - Held that:- There is opening balance of ₹ 13,01,473.10 as on 01/04/2004 and there is deduction of ₹ 3,93,417/- on 31/03/2005 but there is no payment against this opening balance. When this position is considered along with the facts that the assessee has not furnished any detail regarding grower-wise list of money payable, it has to be accepted that such payment is not made by the assessee and the growers are also not claiming the same. Hence, to this extent of the amount deducted from cane price payable to growers, the assessee has not incurred the expenses but debited the same to the profit & loss account in the form of cane price paid and created a liability in the books for which the assessee is not making any payment to anybody and the assessee is not in a position to give partywise details. Under these facts, in our considered opinion, the addition made by the Assessing Officer is justified - Decided against assessee. Addition of legal expenses u/s 40(a)(ia) - CIT(A) deleted the addition - Held that:- The first person is Shri Raghvendra Singh, Advocate to whom payment of ₹ 25,575/- was made which included ₹ 18,500/- on account of his fees and ₹ 6,775/- on account of misc. expenses. The CIT(A) has correctly deleted this disallowance made by the Assessing Officer u/s 40(a)(ia) of the Act on the basis that since the amount paid on account of fees was less than the limit of ₹ 20,000/- on which TDS has to be deducted, there was no requirement for any addition.The second person to whom the payment of ₹ 54,454/- was made is Satish Arora & Co. which included ₹ 3,092.50 on account of travelling expenses and photocopy expenses. It is held by CIT(A) that there was no requirement of TDS from the reimbursement of expenses and deleted the disallowance made by the Assessing Officer. Considering the facts of the case, we do not find any infirmity in the action of CIT(A)- Decided against revenue. Addition made u/s 40(a)(ia) on account of commission payment - CIT(A) deleted the addition - Held that:- From the para of CIT(A), we find that a clear finding is given by CIT(A) that as per certificate of UP Co-operative Sugar Factories Federation, TDS was deducted on sale of sugar and TDS was deposited with Central Government. This finding of CIT(A) could not be controverted and hence, we decline to interfere in the order of CIT(A).- Decided against revenue. Addition u/s 36(1)(va) on account of late deposit of employee’s deduction of P.F. and on account of G.I.S. recoveries from employee's late deposited u/s 36(1)(va)- CIT(A) deleted the addition - Held that:- This issue is covered in favour of the assessee by the Tribunal decision in which the Tribunal has followed the judgment rendered in the case of CIT vs. Manoj Kumar Singh [2012 (5) TMI 176 - ALLAHABAD HIGH COURT]. Respectfully following this Tribunal decision, we decline to interfere in the order of CIT(A).- Decided against revenue. Addition on account of non refundable deposit - CIT(A) deleted the addition - Held that:- This issue is covered in favour of the assessee by the judgment of Commissioner of Income-tax Vs Siddheshwar Sahakari Sakhar Karkhana Ltd. [2004 (9) TMI 6 - SUPREME Court ] and Commissioner of Income-tax Vs Ramala Sahkari Chini Mills Ltd. as reported in (2005 (3) TMI 82 - ALLAHABAD High Court ).- Decided against revenue. Addition on account of payment of subscription to federation u/s 40(a)(ia) - CIT(A) deleted the addition - Held that:- This issue is covered in favour of the assessee by the Tribunal decision rendered in the case of this very assessee for assessment year 2006- 07, 2007-08 and 2008-09 - Decided against revenue.
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