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2018 (6) TMI 1541 - AT - Income TaxDisallowance of Interest in respect of advances to companies/other concern - addition being estimated interest @ 15% to various parties - Held that:- We find that the Tribunal consistently set aside the issue to follow the precedent laid down by Hon’ble Supreme Court in the case of S.A. Builders [2006 (12) TMI 82 - SUPREME COURT]. On same reasoning, we set aside this issue to the file of the AO. This issue is allowed for statistical purposes. Addition of valuation of closing of finished goods - Held that:- This issue has to be allowed in favour of assessee by giving direction in regard to alternative claim that the addition to closing stock of finished goods made by the AO should be given consequential effect to the opening stock of next year also. Taxing interest on Government securities - Held that:- We find that the Tribunal has consistently confirmed the orders of the lower authorities in bringing the interest on Government securities, respectfully following the same, we confirm the order of CIT(A) and this issue of assessee’s appeal is dismissed. Inclusion import duty to the income of the assessee - Held that:- As the facts circumstances are exactly identical in this year, respectfully following the Tribunal’s order in earlier years, we direct the AO to exclude the import duty entitlements from the total income of the assessee. This issue of the assessee’s appeal is accordingly allowed. Disallowance on Pooja expenses - Held that:- Tribunal in the assessee's own the A.Y. 1997-98 and 2003-04 has decided a similar issue in favour of the assessee. Disallowing the claim of payment made to relatives of deceased employees - Held that:- Respectfully following the Tribunal’s order in earlier years, we direct the AO to allow the claim of payment made to relatives of deceased employees. This issue of the assessee’s appeal is accordingly allowed. Disallowing expenses relatable to exempt income - Held that:- We find that the Tribunal in earlier years also remanded the matter back to the file of the AO with directions to decide a reasonable disallowance by following the decision in the case of Godrej & Boyce Manufacturing Company Limited Vs. DCIT [2010 (8) TMI 77 - BOMBAY HIGH COURT]. Accordingly, we also direct the AO to decide the issue in terms of the directions of Tribunal in 1999-2000. Accordingly, this issue is remanded back to the file of the AO. Not excluding the CFC grant received in pursuant to the Montreal Protocol for phasing out production of refrigerant gases - Held that:- Grant received by the assessee from Multilateral Fund set up under Montreal Protocol signed by various countries to protect environment is in public interest to protect environment from Ozone Depleting Substance (ODS) and this grant has nothing to do with setting up of industry or its economics or profitability and hence this is capital receipt not liable to tax in India. Accordingly, we allow this issue of assessee’s appeal.
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