TMI Blog2018 (3) TMI 669X X X X Extracts X X X X X X X X Extracts X X X X ..... Held that:- Order of the tribunal is upheld deleting the addition of the amount made on account of under valuation of closing stock in view of the fact in the case of CIT vs. Bannari Amman Sugars Ltd. (2012 (9) TMI 848 - SUPREME COURT) has held that the stock of incentive sugar has to be valued on the levy price and not on cost price. Contribution to provident fund made by the assessee, it has been recorded as a matter of fact that the contribution was made well within the grace period. Such being the case it was liable to be allowed under section 43B of the Act. Decided in favour of the assessee. Assessee as held to be entitled to the deduction on account of interest on excess levy sugar price. This question is also therefore decided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - which was added on account of Production Incentive Bonus? 2.Whether on the facts and in the circumstances of the case, the tribunal was legally justified in restricting the disallowance of guest house expenses from ₹ 3,81,981/- to ₹ 50,000/- in view of provisions of section 37(4) of Income Tax Act, 1961 and judgment of Hon'ble Apex Court reported in 278 ITR 546? 3.Whether on the facts and in the circumstances of the case, the tribunal was legally justified in upholding that contribution to Provident Fund if paid within grace period is not disallowable u/s43B? 4.Whether on the facts and in the circumstances of the case, the tribunal was legally justified in upholding the order of Commissioner of Income Tax (A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as a matter of fact that the contribution was made well within the grace period. Such being the case it was liable to be allowed under section 43B of the Act. Therefore this question is answered against the department and in favour of the assessee. In so far as the question no.4 is concerned, with regard to the levy price of sugar, the tribunal has relied on a decision dated 16.6.2005 of Allahabad High Court at Lucknow Bench in the case of Commissioner of Income Tax vs. M/s. Dhampur Sugar Mills Ltd. (Income Tax Reference no.122 of 1995) wherein identical circumstances,, the assessee was held to be entitled to the deduction on account of interest on excess levy sugar price. This question is also therefore decided in favour of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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