Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 181 - AT - Income TaxAllowability of bad debts written off - offer as income in earlier year - HELD THAT:- We uphold the remittance of the issue of bad debts to the file of the CIT(A). AO shall decide the issue in both angles. He first decide whether sum has suffered tax in earlier years, and can be allowed as bad debts as claimed by the assessee. If not, he shall verify whether it can be allowed as business loss u/s 37. Addition u/s 145A - exclusive method of accounting - calculation of closing stock on account of CENVAT - HELD THAT:- It is not disputed by the Revenue that the assessee has been following consistently the method of valuation of closing stock i.e. exclusive method of accounting for valuation of purchase and sale of goods and inventory. Assessee is maintaining separate books for CENVAT. We find that the position of law on this issue is clear. CENVAT will form part of closing stock only when the same is debited to the profit and loss account i.e. at the time of actual payment. Addition and/or deduction of CENVAT to the value of closing stock has no impact on financial position of the assessee, as the same is revenue neutral. The ld.CIT(A) has accepted the method adopted by the assessee in the light of various judgments. - ground of Revenue is dismissed. Addition on account of interest paid on capital work-in-progress - no interest bearing funds were utilized in connection with the capital WIP - HELD THAT:- We are of the view that the ld.CIT(A) has rightly set aside the issue to the file of the AO for verification of this claim, with direction to allow the same if he finds the same to be correct. This direction of the ld.CIT(A) cannot said to be incorrect or unjust. - ground in both the appeal of the Revenue and the CO of the assessee is rejected. Addition u/s 2(22)(e) - deemed dividend - HELD THAT:- We find that the CIT(A) has recorded a finding that the assessee is not a shareholder of the lender company within the meaning of section 2(22)(e) and therefore, there is no question of treating the loan to be deemed dividend in this case. The CIT(A) has based his finding on the ground that similar addition was deleted in the assessee’s own case for the assessment year 2009-10, which was upheld by the Tribunal also [2013 (11) TMI 323 - ITAT AHMEDABAD] . Since there is no disparity on facts in the present assessment year also, applicability of section 2(22)(e) does not arise. In the result, appeal of the Revenue is dismissed. Disallowance of late payment of employees contribution to PF - HELD THAT:- This issue is to decided against the assessee in view of Hon’ble jurisdictional High Court decision in the case of CIT Vs. Gujarat State Road Transport corporation Ltd. [2014 (1) TMI 502 - GUJARAT HIGH COURT] . In view of this submission of the assessee, we reject this ground of CO.
|