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2018 (3) TMI 669 - HC - Income TaxAddition on account of Production Incentive Bonus - Held that:- Question to be answered against the department in view of the judgment in the case of Commissioner of Income Tax vs. M/s. Kisan Sahkari Chini Mills Ltd. (2017 (8) TMI 131 - ALLAHABAD HIGH COURT) wherein this court has held that where incentive bonus has been paid as a reward of good attendance and efficiency to the workers, it would be deductible under section 37 of the Act and therefore the tribunal has not erred in allowing deduction in respect of the incentive bonus in the present case also. Addition of undervaluation of closing stock - Held that:- Order of the tribunal is upheld deleting the addition of the amount made on account of under valuation of closing stock in view of the fact in the case of CIT vs. Bannari Amman Sugars Ltd. (2012 (9) TMI 848 - SUPREME COURT) has held that the stock of incentive sugar has to be valued on the levy price and not on cost price. Contribution to provident fund made by the assessee, it has been recorded as a matter of fact that the contribution was made well within the grace period. Such being the case it was liable to be allowed under section 43B of the Act. Decided in favour of the assessee. Assessee as held to be entitled to the deduction on account of interest on excess levy sugar price. This question is also therefore decided in favour of the assessee Disallowance of guest house expenses - Held that:- This court in the case of Commissioner of Income Tax vs. M/s. Kisan Sahkari Chini Mills Ltd. (supra) by which the tribunal has deleted the disallowance of guest house expenses under section 37 as in view of the provisions of sub-section (4) of section 37 which stood at the relevant time all expenses incurred to the assessee on any accommodation of the nature of the guest house after 28.2.1970 were not allowable. The question is answered in favour of the department and against the assessee.
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