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2018 (3) TMI 1612 - AT - Income TaxDisallowance made of employee’s contribution to ESI - Held that:- The assessee paid the Employees’ contribution to Provident Fund, ESIC and Professional Tax before the due date of furnishing the return u/s. 139(1) of the Income Tax Act, 1961. Thus, there is no need to interfere with the order of the CIT(A)in deleting addition . The appeal of the Revenue is dismissed . See CIT vs. M/s. Vinay Cement Ltd. [2007 (3) TMI 346 - SUPREME COURT OF INDIA] and CIT Vs. AIMIL Ltd. (2009 (12) TMI 38 - DELHI HIGH COURT) - Decided in favour of assessee. Liability of the claim of interest - Held that:- The entire issue should go back to the file of the Assessing Officer for fresh adjudication, in accordance with law. The contention of the assesse that it had interest free funds and that the same were advanced to a sister concern, subsidiaries etc. requires factual verification. The decision of the Tribunal and Hon’ble High Courts on this matter have to be followed by the Assessing Officer. AO should specifically consider the assessee’s claim of expenditure on Payment of bill collection charges, Cheque clearance/discounting charges, Letter of credit against supplies, Interest on packing credit loan, dealers and suppliers hundi, overdue interest on raw material suppliers, sales documents, interest paid on fixed deposits and intercorporate deposits, guarantee commission, Interest paid on sales tax, Central Excise etc. Allowability of prior period expenditure - Held that:- The assessee submits that the ld. CIT(A) by oversight, confirmed the disallowance of ₹ 15,546,502/-, though the ld. DCIT, Circle-10, Kolkata, has opined that this expenditure is allowable on examination of the documents and records. We are of the opinion that this issue is also to be set aside to the file of the Assessing Officer for fresh adjudication, in accordance with law. Claim of bad debts written off - Held that:- CIT(A) was right in allowing the claim of the assessee of bad debts written off. This decision of the ld. CIT(A) is in consonance with the propositions of law laid down by the Hon’ble Supreme Court in the case TRF Ltd. v. CIT [2010 (2) TMI 211 - SUPREME COURT]. Hence, we find no infirmity in the order of the ld. CIT(A) and dismiss this ground of the revenue. Addition made on account of foreign exchange loss - Held that:- The undisputed fact is that this loss of foreign exchange is on current account. Under these circumstances, we find that the order of the ld. First Appellate Authority, is in line with the decision of the Hon’ble Supreme Court in the case of Oil & Natural Gas Corporation Limited Vs. CIT (2010 (3) TMI 81 - SUPREME COURT ). Addition made by the Assessing Officer on account of post production interest on deferred credits - Held that:- The assessee submits that he has not claimed this amount as a deduction in his return nor deducted the same to the profit and loss account. Under these circumstances, we find that this ground is mis-conceived. In the result, this ground of the revenue is dismissed.
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