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2016 (5) TMI 1173 - AT - Income TaxDisallowance of deduction u/s 36(1)(va) for employees contribution beyond due date of payment - Held that:- The assessee credited the amount of employees contribution in the books and delayed in depositing the same with PF/ESI department within the statutory time limit. Ld. Assessing Officer further observed that assessee was required to deposit PF on a monthly basis but in respect of PF deducted at ₹ 59,784/- the same was deposited after the due date of payment and claimed the same to be deductible u/s 43B of the Act to have been deposited before the due date of filing the return. Respectfully following the decision in the case of CIT vs. GSRTC [2014 (1) TMI 502 - GUJARAT HIGH COURT] Assessing Officer has rightly disallowed the deduction u/s 36(1)(va) of the Act at ₹ 59,784/- in regard to employees contribution deposit beyond due date of payment - Decided against assessee Disallowance of proportionate interest - Held that:- Looking to the past history of decisions by the coordinate bench in assessee’s own case it has been repeatedly held that no disallowance is called for on account of proportionate disallowance of interest for application of borrowed funds to interest free loans and advances and therefore, for the year under appeal also we do not find any reason to interfere with the order of ld. CIT(A) in deleting the disallowance - Decided against revenue Addition on account shortage of automobile parts - Held that:- From going through the records, we observe that short was duly shown in the quantitative details forming part of tax audit report showing therein a shortage of 1111 number of parts. We however, observe that complete quantitative details have been maintained and no defect has been pointed out by ld. Assessing Officer during the course of assessment proceedings. We further observe that total number of 825262 nos. of components were sold during the year and in percentage terms the shortage is just 0.13% of the total items sold. We are of the considered view that ld. Assessing Officer has made an estimated addition without corroborating the facts with the books of accounts and not pointing out any mistake in the quantitative purchase and sale nor any defect has been pointed out in the manufacturing activities carried on by the assessee and not appreciating the fact that while conducting business of items which are huge in numbers, a minor shortage on account of pilferage, handling, wear and tear etc. cannot be ruled out. Therefore, ld. CIT(A) has rightly deleted the addition - Decided against revenue Disallowance of diesel expenses and trip and bhatta expenses - Held that:- Respectfully applying the ratio of the decision taken by coordinate bench on the issue which is verbatim same in assessee’s own case the disallowance on account of trip bhatta and diesel expenses to be restricted to 1/3rd of the total disallowance of ₹ 41,74,300/-. In other words, disallowance sustained by ld. CIT(A) at ₹ 13,82,433/- is upheld. - Decided against revenue
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