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2016 (1) TMI 245 - AT - Income TaxDisallowance u/s 40(a)(ia) - payment of transport charges - Held that:- As decided in assessee's own case for the assessment year 2008-09 nature of between assessee & M/s. Sachin Cargo Movers, C&F Agent, was for reimbursement of expenses. Besides, the TDS thereon has been deducted by the agent as mentioned above. By now, it has been settled by various Courts that reimbursement of expenses are not liable for deduction u/s 40(a)(ia) of the Act. In any case the agent has deducted the TDS a fact not disputed by revenue, in this eventuality also the case laws cited by the ld. AR supports this proposition. In view thereof, we hold that the expenses paid to M/s. Sachin Cargo Movers, C&F Agent, being for reimbursement of expenses cannot be disallowed u/s 40(a)(ia) - Decided in favour of assessee. Assessee is entitled to deduction under section 10BA for this year on non duty draw back DEPB claim and ld. CIT (A) has rightly allowed the same to assessee. Delay in TDS payment on job work - Held that:- It has not been disputed that the requisite TDS was paid by assessee before due date of return. In view thereof this claim of the assessee is allowed. Increase in valuation of the closing stock - whether to be allowed in next year as increase in opening stock in next year i.e. 2010-11 - Held that:- It has not been disputed that the assessee has not claimed any benefit by increase in valuation of stock in subsequent year. Hence, the addition becomes revenue neutral. Consequently, respectfully following the decision of Hon'ble Supreme Court in the case of CIT vs. Excel Industries Ltd. (2013 (10) TMI 324 - SUPREME COURT ) the addition being tax neutral and the assessee having not derived any benefit, the addition is deleted.
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