TaxTMI 
TaxTMI 
2011 (2) TMI 546
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....07, for the assessment year 2003-04, claiming following substantial questions of law:- "I. Whether, on the facts and in the circumstances of the case, the Ld. ITAT was right in law in upholding the order of the Ld. CIT(A) in deleting the addition of Rs.2,33,576/- made by the Assessing Officer on account of security expenses disregarding the fact that the assessee had failed to discharge the onus that the expenditure was incurred wholly and exclusively for the purposes of business? II. Whether, on the facts and in the circumstances of the case, the Ld. ITAT was right in law in confirming the order of the Ld. CIT(A) in deleting the addition of Rs.40,57,491/- made by the Assessing Officer on account of late deposit of emplo....
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....ccount of car expenses even though the assessee, having failed to discharge the onus that the expenditure was incurred wholly and exclusively for the purpose of business and the assessee had itself offered 1/10th of such expenses to be treated as income on account of personal use of Cars and is contrary to the decision of Hon'ble Madras High Court in the cases of CIT vs. Chitram and Co. (P) Ltd. 191 ITR 96 and CIT vs. Madura Coats Ltd. 263 ITR 241?" 2. The facts necessary for adjudication as pleaded in the appeal are that the assessee filed its return on 27.11.2003 for the assessment year 2003-04 declaring an income of Rs.1,06,74,525/-. The assessment was completed on 31.3.2006 after making several additions at an income of Rs.1,8....
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....expenses, in para 3.2 had recorded as under:- "3.2 I have carefully considered the submissions of the Ld. AR and perused the order of assessment. I have also perused all the documents mentioned at Sr. No. (i) to (v) enclosed in the paper book, which clearly show that the threats were made to the directors Mr.K.C. Lakhani and Mr. P.D. Lakhani and several FIRs were lodged with the police for protecting them against the extortion money. All these documents show that the directors of the company were directly hit during the normal course of business and in order to facilitate the business activities in a smooth manner, they have to incur expenditure on security by taking the help of the Local Police. The appellant company made the pay....
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....dervaluation of closing stock, observed as under:- "6.1. During the appellate proceedings, the LD. AR has submitted that this tax is not charged by suppliers in the bills like Sales/tax and VAT. It is only charged at the end of the year in respect of the local purchases made during the year which part have been utilized for transfer of the goods to own office outside the State and does not become part of stock lying with the assessee at any time or at any stage. The additions made are erroneous and hence, bad in law. It has nothing to do with the entry of goods in the State and LADT Act has been declared unconstitutional and held ultra vires by the Hon'ble Supreme Court in the case of Jindal Stainless Ltd. & Anr. v. Stat....