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2015 (11) TMI 639 - AT - Income TaxDisallowance of deduction u/s 80 JJAA - CIT(A) allowed the claim - Held that:- In assessee's own case for the A.Y. 2008-09 the Tribunal had upheld the observations of the Ld.CIT(A) that as per provisions of S.80 JJAA(1) of the Act the benefit is to be allowed for three years starting from the P.Y. in which the employment was provided, and as such the benefit will be available for the succeeding two years also. The Tribunal also considered the Proviso to S.80 JJAA of the Act and held that the same is applicable to the first year only and as per said Proviso in the case of existing undertaking the additional wages shall be 'nil' if the increase in the number of work men during the year is less than 10% of the work men employed in such undertaking on the last date of the preceding year. In view of above legal proposition when we analyse the facts and circumstances of the A.Y. 2009-10 we clearly observe that as per provisions of S.80 JJAA of the Act the deduction is available for three consecutive years in respect of the additional employment created by the assessee company during the first year itself i.e. A.Y. 2007-08 and, therefore, the fact that the assessee has employed 1022 new work men during the A.Y. 2009-10 is irrelevant for adjudication of the claim of deduction in respect of employment created by the assessee during the A.Y. 2007-08. Under the above noted facts and circumstances and respectfully following the propositions laid down by the Tribunal in the order for A.Y. 2008-09 in the assessee's own case we are unable to see any incorrectness or any other valid reason to interfere with the order of the First Appellate Authority and thus we hold that the impugned addition made by the A.O. was misconceived and not sustainable on the facts and in law and the same was rightly directed to be deleted by the Ld.CIT(A). - Decided against revenue. Addition on account of sales returns - CIT(A) deleted the addition - Held that:- We are in agreement with the conclusion of the Ld.CIT(A) that there was a difference between the disallowance of expenditure and the accrual of income and as per prudent concept of accountancy the income cannot be charged until and unless it is realised or accrued to the assessee. On this issue the AO tried to charge alleged excessive sales returns to tax by taking 4.5% average sales returns which is not a correct approach. The amount of sales return is an expenditure accrued to the assessee when sold newspapers returned by the vendors on account of unsold stock and the same is deducted from the amount of sales raised against the respective vendors. The revenue authorities can not ignore this fact that the amount of sales return shown by the assessee is varying from place to place and in the maximum cases the percentage of sales return is less than 4.5% which is as low as 2.08% in Agra, 2.32% in Punchkula. In this situation disallowance on the basis of average 4.5% sales returns cannot be held to be unsustainable. In this situation we are in agreement with the conclusion of the Ld.CIT(A) that the assessee has duly accounted sales returns on the basis of evidence produced and brought on record, therefore, disallowance made by the A.O. cannot be held as sustainable and in accordance with law and the Ld.CIT(A) rightly followed the proposition laid down by the ITAT Agra Bench in assessee's own case for the A.Y. 2003-04. Accordingly we incline to hold that the AO made disallowance and addition without any basis and by ignoring the relevant facts and explanation of the assessee and the sale was rightly held as unsustainable by the Ld.CIT(A) and the First Appellate Authority had rightly directed the AO to delete the same. - Decided against revenue.
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