AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2014 (9) TMI 1087
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....990/-. Subsequently it revised the return of income on 23.07.2008 showing the total income of Rs. 20,30,058/-. The case was selected for scrutiny and thereafter the assessment was framed u/s. 143(3) vide order dated 23.11.2010 and total income was determined at Rs. 69,80,010/-. Aggrieved by the order of A.O, Assessee carried the matter before CIT(A). CIT(A) vide order dated 04.10.2011 granted partial relief to the Assessee. Aggrieved by the order CIT(A), Assessee is now in appeal before us and has raised following grounds:- 1.1 The order passed u/s.250 on 4.10.2011 for A.Y.2008-09 by CIT(A)-XI, Abad upholding the disallowance of gratuity payment of Rs. 3,15,933 and loss on valuation of shares of Rs. 45,49,017/- made by AO is wholly illega....
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....unt but in the revised return, the claim of expenditure was made. A.O was of the view that the claim of gratuity to be payable and claimed u/s. 40A(7) was not allowable since the amount was not routed through the regular books of accounts and since it did not find place under the expenses. He therefore added the aforesaid sum to the total income of the Assessee. Aggrieved by the order of A.O, Assessee carried the matter before CIT(A). CIT(A) upheld the order of A.O by holding as under:- 2.2 I have carefully considered the rival submission. I have also gone through assessment order and the submissions made by the A.R. It is seen that the appellant has not claimed this deduction in the original return. This deduction is claimed in the revis....
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....ayment has come directly from the Life Insurance Corporation of India. Since the payment was not made by the appellant accordingly even the condition as mentioned in para (i) above is also not fulfilled. 5. Aggrieved by the order of CIT(A), Assessee is now in appeal before us. 6. Before us, the ld. A.R. submitted that as per the guidelines of RBI, the Staff Gratuity Fund of its employees was maintained through LIC. He submitted that the deduction on account of gratuity was claimed when actual payment of gratuity was made to the concerned employee and not when the amount was paid to LIC. He further submitted that the aforesaid policy of accounting was consistently followed by Assessee and further there was no double deduction claimed. He t....
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....r the head investment and the surplus funds were invested in mutual funds and the mutual funds were having lock in period of 3 years. He was of the view that the loss or gain on the mutual fund would occur only after its redemption, maturity or termination of the scheme. In the present case, the Assessee had neither redeemed the investment nor the schemes have been terminated and therefore the loss on account of investment depreciation was not allowable as deduction. He accordingly disallowed the claim deduction. Aggrieved by the order of A.O, Assessee carried the matter before CIT(A). CIT(A) upheld the order of A.O by holding as under:- 3.2 I have carefully considered the rival submissions. I have also gone through assessment order and t....
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....ng stock purposes and the auditor's observations are misplaced and deserved to be rejected summarily. Similarly, the RBI guidelines as submitted by the appellant read as under: "Investments in quoted debt/money market Mutual Fund Units should be valued as per stock exchange quotations. Investments in non-quoted Mutual Funds Units are to be valued on the basis of the latest re-purchase price declared by the Mutual Funds in respect of each particular scheme. In case of funds with a lock-in-period, or where repurchase price/market quote is not available, Units could be valued at NAV. If N V is not available, then these could be valued at cost, till the end of the lock-in period. " 3.4 Perusal of this guideline further reveals that as p....