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2019 (2) TMI 1397 - AT - Income TaxUnexplained investment in purchases of raw materials - inflation of purchases of raw materials u/s.69 - difference between the actual consumption of raw material vis-àvis standard consumption prescribed under the Exim Input-Output Norms - HELD THAT:- As decided in assessee's own case [2016 (8) TMI 1043 - GUJARAT HIGH COURT] assessee was manufacturing pharmaceutical, medicines, which are being exported. The assessee was maintaining the norms which are prescribed by the Government of India for a particular pharmaceutical medicine which is to be exported. Since there was a variation in the ratio, the Assessing Officer made addition based on the statement of the General Manager, in-charge production. In our view, the AO has based his addition on the basis of the documents which are not available on the record and based on the statement of the General Manager, in-charge production. Whether the assessee has followed the prescribed norms is not within the purview of the Income-tax Authority, In our view, the Tribunal has rightly held that the CIT(A) was wrong in relying on the input out consumption ratio. In our view, the Assessing Officer and the Commissioner of Income-tax (Appeals) have gone on different directions. - Decided against revenue. Claim of deduction u/s 10B - HELD THAT:- There is no ambiguity about the eligibility of deduction claimed by the assessee u/s 10B . Thus, if any disallowance is made in respect of the unit eligible for deduction u/s 10B of the Act, then the assessee will be entitled todeduction on the amount of profit enhanced by such disallowance - Circular No.37 of 2016 issued by CBDT dated 02.11.2016 stated disallowances made under sections 32, 40(a)(ia), 40A(3), 43B, etc. of the Act and other specific disallowances, related to the business activity against which the Chapter VI-A deduction has been claimed, result in enhancement of the profits of the eligible business, and that deduction under Chapter VI-A is admissible on the profits so enhanced by the disallowance - Decided against revenue. Addition u/s 36(1)(va) r.w.s 2(24)(x) on account of alleged late payment of employees' contribution towards provident fund, ESI, etc. - HELD THAT:- AR before us has submitted that the due date for depositing the employee’s contribution towards PF/ESI should be seen from the date of the payment and not from the due date. In this regard, we note that the Jurisdictional Tribunal in the identical facts and circumstance in the case of Suzlon Energy Ltd. [2018 (8) TMI 447 - ITAT AHMEDABAD] has restored this issue to the file of the AO for fresh adjudication. Therefore, respectfully following the same, we are inclined to restore the issue on the hand to the file of AO for fresh adjudication
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