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TMI Blog2011 (2) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... ate to it and hence, was not worked out by the appellant company or disclosed in the books of account - Hence, section 145A is not applicable - As per the case of M/s Lakhani India Ltd. in appeal No. 36/06-07 vide order dated 29.03.2007 for the assessment year 2003-04. Following this order, the addition on a/c of undervaluation of closing stock on the basis of effecting entry tax is, therefore, deleted. Disallowance on account of use of car - The disallowance on account of personal use of car was also deleted by holding that there was no element of personal nature in such expenses and it could only be added in the hands of the directors alone - Therefore, the disallowance out of car expenses worked out by the AO, is deleted. - ITA No. 31 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of CIT vs. Pamwi Tissues Limited 215 CTR 150 (Bom.)? III. Whether, on the facts and in the circumstances of the case, the the Ld. ITAT was right in law in confirming the order of the Ld. CIT(A) in deleting the addition of Rs.7,30,934/- made by the Assessing Officer on account of late deposit of employer's contribution to EPF as without appreciating the fact that payments were not made by the assessee within the prescribed due dates by which the assessee was required to make payments, in contravention of the decision in the case of CIT vs. Pamwi Tissues Limited 215 CTR 150 (Bom.) IV. 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d an appeal before the Tribunal and the Tribunal vide order dated 19.6.2009 dismissed the appeal. Hence, the present appeal by the revenue. 3. We have heard learned counsel for the revenue. 4. At the very outset, it may be noticed that the learned counsel for the revenue fairly conceded that questions II and III as claimed by the revenue stand concluded by the decision of the Apex Court in Commissioner of Income Tax v. Alom Extrusions Ltd. (2009) 319 ITR 306. Accordingly, the said questions do not arise for consideration in this appeal. 5. Learned counsel for the revenue, however, made submission on questions I, IV and V. He submitted that the Tribunal had erroneously upheld the order of the CIT(A) in respect of following expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e expenditure is of capital nature but is an expenditure wholly and exclusively incurred for the business purposes. The ld. AR has brought to my notice the order of my predecessor dated 22.04.1999 in appeal No. 11/98- 99 in the case of M/s Lakhani Footwear Ltd. assessment year 1995-96, wherein similar expenditure was incurred and the Board resolution was passed sanctioning such expenditure and it was ruled out to be business expenditure and was, therefore, allowed. On the similar facts and circumstances of the case, the expenditure of Rs.2,33,576/- is also treated to be business expenditure and is, thus, allowed u/s 37(1) of the I.T. Act and disallowance is accordingly, deleted. It was held that the expenditure on account of security w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ck as it did not relate to it and hence, was not worked out by the appellant company or disclosed in the books of account. Hence, section 145A is not applicable. Similar finding was given by the undersigned in the case of M/s Lakhani India Ltd. in appeal No. 36/06-07 vide order dated 29.03.2007 for the assessment year 2003-04. Following this order, the addition of Rs.13,51,846/- on a/c of undervaluation of closing stock on the basis of effecting entry tax is, therefore, deleted. (C) Disallowance on account of use of car:- Further, the disallowance on account of personal use of car was also deleted by holding that there was no element of personal nature in such expenses and it could only be added in the hands of the directors alone. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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