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2015 (4) TMI 7 - AT - Income TaxContribution towards provident fund - CIT(A) deleted the addition - Held that:-No contrary evidence has been placed by the Revenue except half heated arguments devoid of facts, we find no infirmity in the impugned order where considering the past history the AO rejected the assessee’s claim and the CIT(A), considering the facts on record relying upon the High Court’s decision upto which stage the issue was settled allowed the claim of the assessee by rejecting the departmental plea. It is a matter of record that consistently the view on the issue has not been varied either by the Tribunal or by any Higher Forum in the intervening years. Accordingly being satisfied by the finding in the absence of any fact to the contrary the Ground raised is dismissed. - Decided against revenue. Disallowance u/s 14A - CIT(A) deleted the addition - Held that:- Assessing Officer has not considered all relevant facts on record and has also not verified the claim of the assessee with regard to the source of investment. To reach at the conclusion that he was not satisfied with the claim of assessee with regard to expenses incurred to earn exempted income, then only he can invoke Rule 8D for working out the disallowance. Therefore, in our considered view, this issue requires a relook at the level of Assessing Officer. The same is restored to the file of the Assessing Officer for deciding de novo after providing an opportunity of being heard to the assessee. In the case of disallowance with regard to the administrative and other expenses being 0.5% of average value of investment, the assessee’s claim is that average value of investment taken by the Assessing Officer was ₹ 2,50,20,59,294/- instead of ₹ 41,88,44,725/- which is only 16.94% of the average value of investment taken by the Assessing Officer. Therefore, for this aspect also, we set aside the issue to the file of the Assessing Officer. The Assessing Officer shall decide both these disallowances after providing an opportunity of being heard to the assessee and considering the legal position on these issues. - Decided in favour of revenue for statistical purposes. Valuation of closing stock of sugar - CIT(A) deleted the addition - Held that:- The assessee is valuing closing stock on cost or net realizable value whichever is lower since 1993. The issue was contested in Assessment Year 1993-94 up to the Hon'ble Delhi High Court wherein the contention of the assessee has been accepted. The CIT (A) has granted the relief by relying on the decision of ITAT which has been confirmed by Hon'ble High Court. Therefore, in our considered view, there is no fault in the order of the CIT (A) and the same is sustained on this issue - Decided in favour of assessee.
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