TMI Blog2012 (11) TMI 1134X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of belated payment of employee s contribution to various employees Welfare Fund i.e. PF, Voluntary PF, ESI Group Savings Linked Insurance, made by the AO under the I.T. Act, 1961. 2. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) erred in deleting the addition made by the AO, amounting toRs.6,81,25,800/- towards closing stock of raw material and spares u/s. 145A of the I.T. Act, 1961 . 3. On the facts and in the circumstances of the case, the impugned order of the Ld.CIT(A) is contrary to law and consequently merits to be set aside and that of the Assessing Officer be restored . 2. Apropos Ground No.1, it is the case of the assessee that the contributions disallowed were deposited before the en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. In this view of the situation after hearing both the parties we see no infirmity in the order of Ld. CIT(A) vide which he has granted the relief to the assessee as mentioned in Ground No.1. Ground No.1 of the revenue is dismissed. 4. Apropos Ground No.2, it was stated to be covered by the earlier decision of the Tribunal rendered for A.Y 2007-08. The facts are stated to be identical. For the sake of convenience the relevant portion of the order of the Tribunal dated 13/01/2011 in ITA No.2201/Mum/2010 on the similar issue is reproduced below: 11. Ground No.3 is directed against the action of the CIT(A) in deleting the disallowance of ₹ 58,09,097/- u/s. 145 of the Act. 12. The AO noted that the tax audit report showed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ought to the notice of the CIT(A) that the issue is covered in favour of the assessee by the order of CIT(A) for AY 1999- 00, 2002-03, 2004-05 and 2006-07. After considering the submissions of the assessee, the CIT(A) deleted the disallowance made by the AO by holding as under: 4.3 I have considered the fact. It is seen that the appellant has been valuing its closing stock of raw material inclusive of freight charges as reflected from the purchase day book and general ledger of item having the value of ₹ 2.90 crore. It is further seen that there is no change in the valuation of the stock. I find that the valuation method has not been changed by the AO in past year and that no adjustment to this effect was made in the subsequent ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant has been valuing its closing stock of raw material inclusive of freight charges as reflected from the purchase day book and general ledger of item having the value of ₹ 2.90 crore and there is no change in the valuation of the stock. The CIT(A) held that the closing stock of previous year would be the opening is stock of the year and therefore estimation of the stock is not justified. The CIT(A) finally deleted the addition following the earlier orders of CIT(A) in assessee s own case. 5. The facts of the present year are similar. The A.O applied section 145A of the Act. He has observed that audit report has revealed that assessee company did not consider direct expenses while computing value of closing stock. According ..... X X X X Extracts X X X X X X X X Extracts X X X X
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