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2015 (6) TMI 557 - AT - Income TaxDisallowance of salary of employees - Held that:- AO has asked the assessee company to produce these female members for verification, but no one was produced. Thus, the AO on the basis of the reasons given in the assessment order, disallowed the salary on the plea that expenditure was incurred for non-business purpose. The findings recorded by lower authorities have not been controvered by ld. AR by bringing any positive material on record. Accordingly, we do not find any reason to interfere in the findings recorded by lower authorities to the effect that no services were rendered by these female employees. In the statement so recorded during search it was admitted that no services were rendered to the company and they were receiving salary because they are family members of the directors of the company. - Decided against assessee. Disallowance of vehicle expenses on which FBT were paid - AO made the disallowance of vehicle running expenses @20% and depreciation also @20% being personal use of the vehicle - Held that:- The issue with regard to disallowance of expenses on which FBT has been paid is covered by the series of decision of the Tribunal, wherein it was held that once fringe benefit tax is levied on such expenses as has been done in the present case, it follows that the same are treated as fringe benefits provided by the assessee as employer to its employees and the same have to be appropriately allowed as expenses incurred wholly and exclusively incurred by the assessee for the purpose of its business. See Hansraj Mathuradas, Versus The Income Tax Officer, 22(1) (2), Mumbai.[2012 (10) TMI 300 - ITAT, MUMBAI] - Decided in favour of assessee. Addition made u/s.145A on account of unutilized Modvat credits - CIT(A) deleted addition - Held that:- milar issue has been dealt with by the Tribunal in assessee’s own case in the assessment years 2000-01, 2003-04 and 2004-05, wherein the addition made u/s.145A with regard to Modvat credit has been deleted wherein held as per the provisions of section 145A of the Income-tax Act, 1961, the Excise Duty on purchases has to be included in sales. Alternatively, the purchases and sales have to be taken at gross value and whatever credit is left in the Modvat account that would form part of. the closing stock. - Decided in favour of assessee.
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