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2015 (10) TMI 2178 - AT - Income TaxAddition towards employees' contribution to Provident Fund (E.P.F.) - amount remitted beyond the due date prescribed under the P.F. Act but before the due date of filing the return of income under sect ion 139(1) - CIT(A) deleted the addition - Held that:- This issue is directly covered in favour of the assessee by the decision of the Apex Court in Vinay Cement Limited reported in (2007 (3) TMI 346 - Supreme Court of India ), wherein it has been held that "statutory item like EPF is paid before the due date of filing the return of income be allowed irrespective of the fact where the contribution related to the employee and employer". From the verification of the dates as stated in the assessment order, it is observed that the assessee had duly remitted the entire EPF dues before the due date of filing the return of income - Decided in favour of assessee. Disallowance of the Foreign Exchange loss - Held that:- It is seen from the ECB loan agreement, that the loan was utilized for general corporate purposes and not for acquisition of any fixed assets. Hence, we hold that the borrowings were utilized on Revenue Account and the provisions of section 43A of the Act were not applicable at all in the facts of the case. Based on this, it could logically be concluded that any exchange fluctuation arising out of the restatement of the said loan at the end of the year, be it gain or loss, would also fall on revenue account and hence, automatically comes under the ambit of taxation if it is a gain and allowable as an expenditure if it is a loss. This issue is squarely covered by the decision of the Hon'ble Supreme Court in the case of CIT –vs.- Woodward Governor India P. Ltd. reported in (2009 (4) TMI 4 - SUPREME COURT) to hold that the sum being the exchange loss would be allowed as deduction under section 37(1) - Decided in favour of assessee. Miscellaneous receipts - income arose from tea business - business income or income from other sources - Held that:- Items A to F [Sale of gunny bag/drums,Bazaar Rent,Road Roller Hire Charges,Land Acquisition by ONGC,Land Acquisition by Montu Nag and Hire charges of Machinery to Apeejay Tea Ltd.] were only arising out of business income and accordingly to be treated as income from business. As regards Items G to J,[Post Office Rent, Car Insurance Claim, Miscellaneous Receipt and Hire Charges of vehicle for election duty] they are to be treated as income from other sources. We direct the Assessing Officer to re-compute accordingly. - Decided partly in favour of assessee.
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