https://www.taxtmi.com/caselaws?id=445008 The ITAT Chennai dismissed the Revenue's appeal regarding proportionate interest on borrowed funds, following consistent Tribunal decisions from assessment years 1997-98 to 2004-05. The Tribunal upheld CIT(A)'s disallowance of provisions for raw materials and stores, finding Rs. 50 lakhs demurrage charges already paid, making provisions non-deductible. Additions for non-existing sundry creditor liabilities were confirmed due to unexplained excess liability declarations and lack of supporting evidence. The Tribunal dismissed appeals regarding non-existent liability to Associated Traders and provisions for excise duty on closing stock. Ocean freight provision matter was remanded to AO for verification. However, the estimated 20% disallowance for repair and maintenance was reduced to 10%, partially allowing the assessee's appeal on this ground. en-us Thu, 12 Oct 2023 00:00:00 +0530 Sat, 28 Oct 2023 08:34:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445008 The ITAT Chennai dismissed the Revenue's appeal regarding proportionate interest on borrowed funds, following consistent Tribunal decisions from assessment years 1997-98 to 2004-05. The Tribunal upheld CIT(A)'s disallowance of provisions for raw materials and stores, finding Rs. 50 lakhs demurrage charges already paid, making provisions non-deductible. Additions for non-existing sundry creditor liabilities were confirmed due to unexplained excess liability declarations and lack of supporting evidence. The Tribunal dismissed appeals regarding non-existent liability to Associated Traders and provisions for excise duty on closing stock. Ocean freight provision matter was remanded to AO for verification. However, the estimated 20% disallowance for repair and maintenance was reduced to 10%, partially allowing the assessee's appeal on this ground. Case-Laws Income Tax Thu, 12 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445008