https://www.taxtmi.com/caselaws?id=462486 ITAT Mumbai allowed assessee's appeal partially in a sugar industry case. The tribunal upheld CIT(A)'s deletion of additions on closing stock valuation of sugarcane, alcohol, and molasses, finding consistent valuation methods accepted by department in past years. Section 14A disallowance was restricted to 2% of exempt income. Government incentives under New Sugar Industry Promotion Policy 2004 were held as capital receipts, not reducible from asset cost. Deduction for molasses storage reserve was allowed under section 115JB following SC precedent. Several issues including dividend income deduction, foreign exchange fluctuation gains, and debenture redemption reserve were remanded to AO for verification and fresh decision. en-us Thu, 12 Jan 2023 00:00:00 +0530 Sat, 21 Jun 2025 12:29:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462486 ITAT Mumbai allowed assessee's appeal partially in a sugar industry case. The tribunal upheld CIT(A)'s deletion of additions on closing stock valuation of sugarcane, alcohol, and molasses, finding consistent valuation methods accepted by department in past years. Section 14A disallowance was restricted to 2% of exempt income. Government incentives under New Sugar Industry Promotion Policy 2004 were held as capital receipts, not reducible from asset cost. Deduction for molasses storage reserve was allowed under section 115JB following SC precedent. Several issues including dividend income deduction, foreign exchange fluctuation gains, and debenture redemption reserve were remanded to AO for verification and fresh decision. Case-Laws Income Tax Thu, 12 Jan 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462486