Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (6) TMI 246 - AT - Income TaxAddition of closing work in progress - CIT(A) deleted the addition - Held that:- Similar issue arose in Assessment Years 2004-05, wherein the CIT(A) has granted the relief to the assessee on similar issue by deleting the addition for closing work-inprogress amounting to ₹ 8,37,568/-. Facts being similar, so following the same reasoning as mentioned in the case of Bajaj Fashions Pvt Ltd ( 2009 (7) TMI 1214 - ITAT AHMEDABAD), this issue in the appeal for Assessment Year 2004-05 is also decided in favour of assessee. Addition of excess payment of interest to sister concern - CIT(A) deleted the addition - Held that:- Following the same reasoning as mentioned in the order of Hon'ble Gujarat High Court in assessee's own case (2015 (1) TMI 663 - GUJARAT HIGH COURT) wherein held if the Tribunal was satisfied that the expenditure was laid out or expended wholly and exclusively for the purpose of the business of the assessee there was no reason why the full amount expended should not have been allowed. It is open to the Tribunal to come to a conclusion either that the alleged payment is not real or that it is not incurred by the assessee in the character of a trader or that it is not laid out wholly and exclusively for the purpose of the business of the assessee and to disallow it. But it is not the function of the Tribunal to determine the remuneration which in their view should be paid to an employee of the assessee , we are not inclined to interfere with the findings of the CIT(A) who has rightly deleted the addition of excess payment of interest to sister concern amounting to ₹ 13,65,558/-; accordingly, the same is upheld. - Decided in favour of assessee.
|