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2013 (10) TMI 603 - AT - Income TaxDisallowance u/s 40(a)(ia) - Disallowance of PF dues - Held that:- It is found from the assessment record that the return of income was filed by the assessee on 31-10-2007 and it is not in dispute that the TDS was deposited in the Government account on 7-6-2007. That being the fact of the matter, as per the amended provisions of section 40(a(ia) of the Act, the same is to be allowable - payments of PF have been made well before filing of the return - Decided in favour of assessee. Nature and effect of amendment to Section 43B – payment of contribution to provident fund - the amendment is made applicable from the assessment year 2004-05 - held that amendment is retrospective - the contribution has been paid prior to the filing of the return. The Supreme Court decision in Vinay Cement Ltd.’s in which the the benefit extended to assessee squarely covers the issue and the assessee is entitled to the benefit under section 43B of the Income-tax Act – amendment retrospective in nature. - deduction allowed. Professional fee expenditure - whether related to business - development of new product - Services of Dr. Dilip Sanvordekar have been utilized for the purposes of assessee's business. It is also not in dispute that the payments made by the assessee are genuine. As per the record, it is seen that and which has also been accepted by the A.O. that the services of Dr. Dilip Sanvordekar, Consultant have been utilized for some projects which are part of assessee's running business. Valuation of stock - addition on account of cenvat credit - Held that:- The A.O. gave a finding that the opening stock for the year under consideration stands increased by the said amount. According to the A.O., after giving credit for the said increase, the net addition on account of unutilized Cenvat credit amounts to Rs. 24,05,558/-. Since the A.O. has himself given a categorical finding in the assessment order which is identical to the directions given by the ld. CIT(A), we do not find any reason why the Revenue has shown its grievance on this account. The A.O. is directed to follow his finding given in the assessment order and restrict the disallowance to Rs. 24,05,558/-.
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