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2022 (12) TMI 529 - AT - Income TaxDisallowances u/s 43B - VAT and Entry Tax - addition on the ground that in the revised return the assessee has added back the same - HELD THAT:- As the observation made by the CIT(A) that the Assessing Officer ignored the details of revised return and in fact the revised return includes the disallowed amount of entry tax and VAT. AO totally ignored the fact that when the said amount was already disallowed there cannot be disallowance of the same because the revised return had replaced the original return prior to assessment and even prior to issue of notice under Section 143(2) of the Act. Thus, there is no need to interfere with the finding of the CIT(A). Ground No. 2 is dismissed. Disallowance being short term provisions appearing in the balance sheet on the basis of fresh evidence - HELD THAT:- CIT(A) had observed that if the Assessing Officer had looked at the further details of the balance sheet it would have revealed that the said provision amount comprises of unpaid interest, provision for expenses and warranty which was also reflected in books of accounts available before the Assessing Officer. Therefore, there is no need to interfere with the findings of the CIT(A). Ground No. 3 is dismissed Disallowances of spare part expenditure - Expenditure claimed for the first time - HELD THAT:- CIT(A) has given a categorical finding that the assessee is an authorized dealer of Ford Vehicles having gross revenue of nearly Rs. 100 crores. Discount on vehicles and purchases were duly entered in the books of account by the Assessee. We agree with the finding of the CIT(A) that merely on the ground that first time discount expenses on spare part cannot be a valid reason for disallowing the same. Ground No. 4 is dismissed. Disallowances out of interest as the assessee had paid huge interest whereas it had not charged any interest on advances made by it - CIT(A) has erred in holding that the AO has made notional addition of interest income, whereas, the language Of the assessment order is that, there is disallowance out of interest expenditure - HELD THAT:- As addition was on notional income and the Assessing Officer could not point out that the assesses was entitled to receive such interest. There is no need to interfere with the finding of the CIT(A). Ground No. 5 is dismissed. Disallowances u/s. 40(a) - qualification made by the auditor in the audit report, on the ground that TDS has been deducted - no evidence in this regard was given to the AO and no proof of the same is filed during the appellate stage even the appellate is not taking the plea that it had deducted and paid TDS (as can be seen from the submission of the assesse reproduced in the appellate order - HELD THAT:- As the assessee submitted before the CIT(A) that due TDS has been deducted and paid subsequently on such amounts. In fact, the assessee has given the copy of ledger account as well during the assessment proceedings. Therefore, the CIT(A) has rightly deleted this addition. Ground Nos. 6 and 7 are dismissed.
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