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2017 (10) TMI 587 - AT - Income TaxAddition of excise duty to the closing stock - assessee has not followed the provision of section 145A - Held that:- following the provisions of section 145A of the Act, effect of taxes or duty etc. paid has to be given to purchase and sales of goods and inventory including, both the closing and opening stock, which the authorities have not considered. Accordingly, we feel it appropriate to restore the issue to the file of the Ld. CIT-(A) with the direction to adjudicate the issue of the effect of section 145A of the Act in the case of the assessee in a comprehensive manner on purchase, sales and inventory (both opening and closing stock) instead of applying selectively only on the closing stock. The assessee shall be afforded adequate opportunity of being heard. Accordingly, the grounds of the appeal from (b) to (f) are allowed for statistical purpose. Disallowance of the traveling expenses - addition as expenses were personal in nature - Held that:- As find that the Ld. CIT-(A) has not considered the objection of the assessee that there were no expenditure of personal nature in foreign travelling expenses. In our opinion, if expenditure has not been incurred wholly and exclusive for the purpose of business then said disallowance could be made under section 37(1) of the Act. Since the Ld. CIT-(A) has sustained the disallowance without taking into account objection of the assessee and verifying the factual claim of the assessee that no expenses of personal nature were incurred, we feel it appropriate to restore the issue to the file of Ld. CIT(A) to decide the issue-in dispute after taking into consideration objections of the assessee. The assessee shall be afforded adequate opportunity of being heard.
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