2012 (11) TMI 1134 - AT - Income Tax

Summary

Issues Involved:
The issues involved in this case are:
1. Deletion of addition made for belated payment of employee's contribution to various funds u/s 1961.
2. Deletion of addition towards closing stock of raw material and spares u/s 145A of the I.T. Act, 1961.

Deletion of Addition for Belated Payment of Employee's Contribution:
The appeal filed by the revenue was against the order passed by Ld. CIT(A)-9, Mumbai for assessment year 2008-09. The revenue raised grounds of appeal regarding the deletion of addition of Rs. 3,50,31,650 made for belated payment of employee's contribution to various funds. The assessee contended that all contributions were deposited before the due date of filing the return, citing the decision in CIT vs. Alom Extrusions Ltd. The Tribunal found that all payments were made before the due date, similar to previous years, and upheld the order of Ld. CIT(A) granting relief to the assessee. Therefore, Ground No.1 of the revenue was dismissed.

Deletion of Addition towards Closing Stock:
Regarding Ground No.2, the issue was covered by a previous Tribunal decision for A.Y 2007-08 with identical facts. The AO estimated direct expenses at 2% of the total value of closing stock of raw material, resulting in an addition of Rs. 6,81,25,800. However, the Ld. CIT(A) deleted this addition based on the valuation method consistently followed by the assessee and previous favorable orders. The Tribunal found the facts similar to the previous year and upheld the relief given by Ld. CIT(A), dismissing Ground No.2 of the revenue.

Conclusion:
No other issues were argued, leading to the dismissal of the appeal filed by the revenue. The order was pronounced on November 9, 2012, by the Appellate Tribunal ITAT Mumbai.