TaxTMI 
TaxTMI 
2016 (5) TMI 1472
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....d, illegal or excessive. 3. Under the facts and circumstances, Ld. A.O. has erred by disallowing the provision of gratuity of Rs. 8,72,000/-, further, CIT(A) erred by sustaining the same. The disallowance made is unjustified, illegal or excessive. 4. Under the facts and circumstances, Ld. A.O. has erred by disallowing pension leave salary of Rs. 15,32,714/-, further, CIT(A) erred by confirming the disallowance to extent of Rs. 9,24,253/-. The disallowance made/confirmed is unjustified, illegal or excessive. 5. Under the facts and circumstances, Ld. A.O. has erred by disallowing Provision of Agreement Arrear of Rs. 13,18,153/-, further, CIT(A) erred by sustaining the same. The disallowance made is unjustified, illegal or excessive. 6. Under the facts and circumstances, ld A.O. has erred by making addition of interest income of Rs. 89,563/-, further, CIT(A) erred by confirming the addition to extent of Rs. 78,563/-. The addition made/sustained is unjustified, illegal or excessive. 7. Under the facts and circumstances, ld A.O. has erred by making addition of Rs. 96,342/- on account of excess cash received, further, CIT(A) erred by sustaining the same to the extent of Rs. 32,....
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....both the amounts payable and paid. VAT is not a conclusive indicator for deciding whether the contract was for sale or work. Therefore, he confirmed the addition of Rs. 6,35,144/-. 3.2 Now the assessee is in appeal before us. The ld AR of the assessee has submitted that the printing and stationary expenses is for purchase of cheque books, passbooks, specimen signature cards, ledgers, fixed deposit books, withdrawal/deposit forms etc., on which VAT had been paid by the assessee on such purchases. The raw material was supplied by the supplier; therefore, expenditures are in the nature of sales to the appellant. The CBDT in circular No. 681 dated 08/3/1994 has clarified in para 7(vi)(b) that where contractor undertakes to supply any article or thing fabricated accounting to specifications given by the Govt. or any other specified persons and the property in such article or thing passes to the government or such person only after such article or thing is delivered, the contract will be contract for sale and shall be outside the purview of Section 194C. Accordingly, disallowance made by the Assessing Officer confirmed by the ld CIT(A) is not justified. The Hon'ble Supreme Court in ....
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.... 8,72,000/-. The ld Assessing Officer claimed gratuity expenses of Rs. 8.72 lacs during the year under consideration. The ld Assessing Officer disallowed this payment as prescribed authority had not approved this fund, which has been confirmed by the ld CIT(A) on similar findings. 4.1 The ld AR of the assessee has submitted that this issue has been considered by the Hon'ble Bench in assessee's own case in ITA No. 1032/JP/2011 A.Y. 2008-09 order dated 14/08/2014 and allowed the appeal in favour of the assessee. The facts and circumstances of the present case are identical, therefore, same may be allowed. 4.2 The ld DR has vehemently supported the orders of the lower authorities. 4.3 We have heard the rival contentions of both the parties and perused the material available on the record. The facts of the present case and similar additions were made in A.Y. 2008-09 by the ld Assessing Officer, which has been deleted by the Coordinate Bench in assessee's own by relying on the Hon'ble Supreme Court decision in the case of CIT Vs Textool Co. Ltd. 263 CTR 257 (SC). The assessee had applied before the ld CIT, Kota but approval of the prescribed authority is pending. Therefore, there....
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....s. 1.00 crore by the assessee in P&L account. As paid by the assessee at Rs. 86,81,847/- and balance amount has been shown as provision, which has been confirmed by the ld CIT(A) on the ground that which required future approval and it was contingent liability for the current year. The fact that same was paid in April, 2012 also formed the finding, therefore, he dismissed the appeal. 6.1 The ld AR of the assessee has submitted that this issue has been considered by the Hon'ble Bench in ITA No. 1032/JP/2011 order dated 14/08/2014 for A.Y. 2008-09 in assessee's own case, wherein it has been held that this salary has been crystallized by way of agreement settled between the administration, employees and union. The appellant is a district level cooperative bank, do revision of the wages and salaries of the staff at State level, effective for previous five years, that results into arrears of salary. After approval of the Finance Department of the State Government, the Cooperative bank made the payment to the employees. As per Accounting Standard AS-1 and AS-2 notified by the Central Govt., it is mandatory to make compliance of these accounting standards. Therefore, the same provision h....
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....A). 7.3 We have heard the rival contentions of both the parties and perused the material available on the record. The assessee had admitted this difference on the basis of 26AS and disclosed the differences of interest income of Rs. 78,563/- in A.Y. 2010-11 and there is no revenue loss if the same amount is considered in A.Y. 2010-11 by the assessee. The Hon'ble Supreme Court decision in the case of Excel Industries (supra) is squarely applicable. Therefore, we delete the addition confirmed by the ld CIT(A). 8. Ground No. 7 is against confirming the addition of Rs. 32,489/-. The ld Assessing Officer disallowed Rs. 96,342/- on account of excess cash reserve. This amount is not payable on expenditure. The ld CIT(A) restricted this addition of Rs. 34,489/- by observing that as per balance sheet as an amount of Rs. 96,342/- had been shown as excess cash reserve. This amount is not payable on expenditure. It is seen that Rs. 63,853/- related to earlier year, therefore, remaining amount of Rs. 32,489/- had been confirmed by him. 8.1 The ld AR of the assessee has submitted that this issue is considered by the Hon'ble ITAT in assessee's own case in A.Y. 2008-09 wherein it has been h....
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.... and facts of the case, the Lord Ganesha is the God of Wealth as considering in Indian methodology. The assessee also deals in banking. It is a fact that all the banks generally participate in Ganesh Mahotasava, which motivates the employee as well as maintain good relation with the customers. Therefore, it is an allowable expense U/s 37 of the Act. The case laws relied upon by the assessee is also applicable. Accordingly, order of the ld CIT(A) on this ground is confirmed. 11. Ground No. 2 of the revenue's appeal is against deleting the addition of Rs. 94,84,714/- on account of leave salary encashment fund U/s 43B(f) of the Act. The ld Assessing Officer observed that the assessee had shown Rs. 94,84,740/- as leave salary encashment fund under "Funds and Reserve" in the balance sheet as against Rs. Nil shown in the assessment year 2008-09. The ld Assessing Officer gave reasonable opportunity of being heard on this issue. It was submitted before the Assessing Officer that pension leave salary encashment fund of Rs. 94,84,717/- was the balance remained with the LIC. There was a difference of Rs. 63,195/-, for which certificate received on 10/7/2009 and some differences was on accoun....