TaxTMI 
TaxTMI 
2018 (12) TMI 1720
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....ith respect to the untilised balance of Modvat / Cenvat credit of Rs. 21,94,236/- and balance with the Excise Authorities of Rs. 33,33,804/-, totaling to Rs. 55,28,040/-: 3). The Ld. Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad has erred in law and on facts in deleting the addition of Rs. 41,41,869/- made on account of undervaluation of stock. 4). The Ld. Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad has erred in law and on facts in deleting the addition of Rs. 11,97,747/- out of total addition of Rs. 14,36,110/-on account of foreign travel expenses which remained with regard to business purpose. 5). The Ld. Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad has erred in law and on facts in deleting the total addition of Rs. 7,65,007/- made on account of Commission expenses, under the Head : 'Commissions to others' even though no proof of genuineness of Services rendered was filed. 6). The Ld. Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad has erred in law and on facts in deleting the addition of Rs. 71,931/- out of total addition of Rs. 2,39,769/- made on account of expenditure on purchase of Computer Software items by treating the same....
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....ng officer has disallowed the excess claim of depreciation of Rs. 2,24,464/- added to the total income of the assessee of the assessee. The assessee has preferred appeal before the ld. CIT(A). The ld. CIT(A) has allowed the appeal of the assessee 5. We have heard rival contentions and perused the material on record. It is noticed that as per rule 5 of income tax rules 1962 depreciation allowance u/s. 32 of the income tax act shall be calculated at the percentage specified in the second column of the table in Appendix 1 effective from assessment year 2006- 07 on wards depreciation is to be calculated @ prescribed in new appendix-1 entry at serial no. 5 of part-III (which deals with rate depreciation on machinery and plant) of the said table referred to computer, including computer software and the rate of depreciation prescribed in the said table against this entry is 60% . As per note 7 below the said table " computer software" means any computer program recorded in any disc, tape, perforated media other information storage device. In the light of the above provision of income tax, we observed that income tax act does not make any difference between the system software and applic....
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....ening stock and closing stock. On this issue the Hon'ble ITAT Bench of Ahmedabad in the case of Alpanil Industries V. ACIT in ITA No. 169/AHD/2005 and 170/AHD/2005 for A.Y. 1999-2000 & 2000-2001 has discussed the principle related to valuation of closing stock U/S.145A of the Act. The relevant portion is reproduced as under:- " Section 145A requires revaluation of not inventory alone but also requires revaluation of purchase and sales. On revaluation of purchase by including the amount of excise duty in respect of which Modvat Credit is available to the assessee, the purchase of the assessee will increase resulting in corresponding decrease in the profit of the assessee. The assessee 's contention that value of closing stock is credited in the profit and loss account to set off the value of unconsumed items of purchase and therefore, both should have same basis cannot be controverted. The only exception to this theory is that when the Modvat value is less than the cost then effectively unrealized loss is allowed as a deduction to the assessee on the well settled principles. In the instant case, the lower authorities were ot justified in revaluing only closing stock so as....
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....s of the assessee the total value of stock as on 31st March, 2009 was shown at Rs. 9,22,57,381/-. Consequently the difference in stock to the amount of Rs. 41,41,869/- was treated by the assessing officer as undervaluation of stock by the assessee and the same was added to the total income of the assessee. Assesse filed appeal before the ld. CIT(A). The ld. CIT(A) has deleted the appeal. 10. We have heard rival contention and perused the material on record. It is noticed that the assessee has filed stock statement to the bank reflecting the position of closing stock as on 24th March, 2009. However, in the balance sheet of the assessee, the position of stock was shown as on 31st March, 2009. The assessing officer has not disproved these material facts that the difference in the valuation of closing stock was arisen because of difference in the dates as per which closing stock was reflected in the bank statement and in the books of account of the assessee. Reliance is also placed on the judicial pronouncement of the hon'ble high court in the case of Riddhi steel and Tubes Ltd. (Tax Appeal No. 846 of 2013). Considering these facts, we do not find any error in the decision of ld. CIT....
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....expenses 13. During the course of assessment proceedings, the assessing officer noticed that assessee has claimed expenses on account of commission paid to other at Rs. 7,65,007/- apart from commission paid to selling agent M/s. ATE Enterprises Ltd. at Rs. 2,22,16,970/-. However, in case of commission paid to others, the assessee has neither submitted copy of agreement nor submitted any proof of services as cited by the assessing officer, therefore, the assessing officer has disallowed the assessee's claim of payment of commission to other and added to the total income of the assessee. Aggrieved assessee has filed appeal before the ld. CIT(A). The ld. CIT(A) has allowed the appeal of the asessee. 14. We have heard the rival contentions and perused the material on record carefully. It is noticed that assessee has submitted details of commission paid to various dealers as overriding commission in accordance with the sales promotion. It is also noticed that assessee has paid commission to various dealers for extra efforts in procuring orders from customers after verification and approved by the Marketing Manager of the assessee company. It is noticed the assessing officer ha....
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....n respect of reinstatement of export receivable and creditors for import of goods outstanding as on 31st March, 2009. We consider that assessee has submitted the corresponding detail demonstrating that the amount computed by way of difference between rate at which the contract was entered into and the rate on the last day of the previous year has been debited in respect of forward contract entered into by the assesse for underlying export transaction which was outstanding as on 31st March, 2009. Similarly, the amount in respect of reinstatement of export receivable and creditors for import as on 31st March, 2009 were reinstated at the foreign exchange rate prevailing on 31st March, 2009. It is also noticed that the foreign exchange rate differences had been incurred in the ordinary course of business in accordance with the consistent accounting policy followed by the company which was in compliance to the accounting standard 11 issued by the ICAI. It is also noticed rule 115 of the income tax rule provides that all the assessee should convert their foreign exchange assets into Indian rupees on the last day of previous year. In view of the facts and detailed finding of the ld. CIT(A....