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2018 (11) TMI 545 - ITAT AHMEDABADDisallowing the late payment made to employees provident fund - deposit beyond due date - Held that:- We note that the Tribunal on number occasions has decided the similar issue by following the judgment of jurisdictional High Court in the case of Gujarat State Road Transport Corporation Ltd. (2014 (1) TMI 502 - GUJARAT HIGH COURT) against the assessee. The jurisdictional High Court in the above case held that where assessee did not deposit employees' contribution in the relevant fund before the due date prescribed in Explanation to section 36(1)(va), no deduction would be admissible even though he deposits same before due date under section 43B. Hence we are not inclined to interfere in the order of the Revenue authorities on this issue. Thus the ground of appeal of the assessee is dismissed. Disallowing the interest on the notional basis - borrowed fund has been utilized in the capital work-in-progress - Held that:- The issue in the present case relates whether the borrowed fund has been utilized in the capital work-in-progress shown in the balance sheet as on 31st March 2011. As per the lower authorities, the borrowed fund has been utilized in the capital work-in-progress in view of the fact that the accumulated loss of the assessee exceeds the fund of the assessee. Assessee before us has not advanced any argument on this issue. Therefore, we have no alternative except to confirm the order of lower authorities. Hence, the ground of appeal of the assessee is dismissed. Nature of expenses - Purchase of stores - capital expenditure eligible for depreciation or revenue expenditure - Held that:- We conclude that the purchase of stores is representing revenue expenditure and no disallowance can be made treating them as capital expenditure. It is also pertinent to note that the AO will disallow the relief given to the assessee by way of providing depreciation on the purchase of stores and will allow the deduction on account of purchase of stores made by the assessee during the year. Hence, the ground of appeal of the assessee is allowed.
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