TaxTMI 
TaxTMI 
2019 (10) TMI 602
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.... 2. The fact in brief is that return of income declaring total income of Rs. 12,55,06,230/- was filed on 30.09.2010. The case was subject to scrutiny and notice u/s. 143(2) of the Act was issued on 30.08.2011. The assessment u/s. 143(3) of the Act was completed on 18.03.2013. Further facts of the case pertaining to the grounds of appeal filed by the Revenue are discussed while adjudicating these grounds of appeal as under. First Ground of Appeal:- Disallowance u/s. 35D:- 3. The assessee has claimed expenses of Rs. 65,57,172/- on account of public issue expenses u/s. 35D of the Act. The AO has disallowed the claim of expenses stating that the assessee has incurred the expenses for increase in the authorised capital of the company and....
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....at assessee has followed exclusive method for accounting CENVAT as against inclusive method mandated u/s. 145A of the Act. The AO has observed that as per the provision of Sec. 145A of the Act the unutilised CENVAT credit had to be included in the closing stock of raw material as work-in-progress and the excise duty paid on unsold finished goods to be included in the inventory of the finished goods. Therefore, he was of the view that unutilised CENVAT credit had to be included in the closing stock of raw material for reducing the cost of consumption of goods charged to the profit and loss account. Therefore, the AO has added unutilised CENVAT credit of Rs. 90,72,239/- to the total income of the assessee. 8. Aggrieved assessee has filed be....
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....ereinabove has attained finality. We therefore see no reason to interfere the CIT(A)'s above extracted conclusion deleting the impugned disallowance of amortization of preliminary expenses as per the referred case law. This first substantive ground fails accordingly." After considering the decision of the Co-ordinate Bench ITAT Ahmedabad in the case of the assessee on the identical issue based on similar fact we do not find any merit on this ground of appeal of the Revenue. Therefore, this ground of appeal is rejected. 12. Regarding disallowance u/s. 14A of the Act the ITAT has also adjudicated vide Para 4 of the order that the assessee was having interest free fund to the tune of Rs. 201 crores as against its investment made in Mutual ....
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....." Respectfully following the decision of the Co-ordinate Bench on similar issue and identical fact in the case of the assessee itself as elaborated above we do not find any merit in the appeal of the Revenue. Therefore, appeal of the Revenue is dismissed. ITA No. 1244/Ahd/2015(Assessee's Appeal):- 14. Ground No. 1 is not pressed. Therefore, this ground of appeal of the assessee is dismissed. 15. Ground No. 2 is regarding disallowance of Rs. 41,38,742/- and Rs. 6,859/- being the amount of Employees' contribution to Provident Fund and ESI u/s. 2,(24)(x) r.w.s. 36(1)(va) of the Act. The aforesaid addition was made as the assessee has deposited the Employees' contribution to Provident Fund as well as ESI after the due date prescribed i....