Political contribution deductions require assessee-specific proof before cash-back allegations can justify disallowance or unexplained-money additions...
The ITAT dismissed Revenue's appeal regarding addition for under-valuation of closing work-in-progress. Following precedent from a Coordinate Bench, the Tribunal held that SS145A requires inventory valuation at lower of actual cost or net realizable value, and excise duty should not be included in closing WIP as no such amount was paid since the stage of levy had not arisen. Regarding disallowance under SS43B for bonus/ex-gratia payments, ITAT upheld CIT(A)'s direction to AO to verify whether payments were made before the filing deadline (30/11/2018), characterizing this as limited verification rather than remand. The Tribunal confirmed that SS43B emphasizes actual payment before the return filing date with proper evidence furnished by the assessee.
The ITAT dismissed Revenue's appeal regarding addition for under-valuation of closing work-in-progress. Following precedent from a Coordinate Bench, the Tribunal held that SS145A requires inventory valuation at lower of actual cost or net realizable value, and excise duty should not be included in closing WIP as no such amount was paid since the stage of levy had not arisen. Regarding disallowance under SS43B for bonus/ex-gratia payments, ITAT upheld CIT(A)'s direction to AO to verify whether payments were made before the filing deadline (30/11/2018), characterizing this as limited verification rather than remand. The Tribunal confirmed that SS43B emphasizes actual payment before the return filing date with proper evidence furnished by the assessee.
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