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2014 (1) TMI 291 - AT - Income TaxEmployees contribution to provident fund - Held that:- Following CIT Vs Alom Extrusion Ltd [2009 (11) TMI 27 - SUPREME COURT] - if the amount is deposited before filing the return of income, the same has to be allowed - Decided in favour of assessee. Disallowance of bed debts - Held that:- The assessee has not brought any material evidence on record to show the nexus of advances with his nature of business - The issue was restored to the files of AO for fresh adjudication. Deduction u/s 80IB - Interest received on fixed deposits - Held that:- The assessee could not bring any evidence to substantiate his claim of direct nexus between the fixed deposits and the business of the assessee - Following Liberty India Ltd [2009 (8) TMI 63 - SUPREME COURT ] - In respect of interest earned on fixed deposits as it cannot be said to have been derived from the business of the industrial undertaking - Decided against assessee. Disallownace of interest - Held that:- The assessee has claimed to have capitalized the interest up to the date of conversion of capital work in progress into capital asset - The AO has categorically verified that the entire interest has been charged to profit and loss account - This needs to be further verified being a factual matter - The issue was restored to the files of AO for fresh adjudication. Unaccounted production - Held that:- The assessee has shown total production of finished goods at 60,96,408 Kgs during the year under consideration - The AO further observed that the assessee has used 3,52,313 kgs of material for home consumption - The assessee has not filed the report of expert - The issue was restored for fresh adjudication. Whether commitment charges are eligible for deduction u/s. 80IB(4) - Held that:- The commitment charges are in the nature of interest on delayed payments received from the customers which is directed related with the sales of the assessee - Following Nirma Industries Ltd. [2006 (2) TMI 92 - GUJARAT High Court] - There is a direct nexus between the commitment charges and the business of the assessee - The commitment charges are derived from the business of the industrial undertaking and therefore eligible for claim of deduction u/s. 80IB(4) of the Act - Decided against Revenue.
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