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TMI Blog2020 (4) TMI 588X X X X Extracts X X X X X X X X Extracts X X X X ..... addition in trading account. Therefore, modifying the findings of the CIT(A) we direct the AO to delete the addition on account of EVA and wages. Modifying the findings of the CIT(A) ground No.3 is dismissed. - ITA No.1454/DEL/2016 - - - Dated:- 5-3-2020 - Shri H. S. Sidhu, Judicial Member And Shri N. K. Billaiya, Accountant Member For the Appellant : Ms. Rakhi Vimal, Sr DR For the Respondent : None ORDER PER N. K. BILLAIYA, AM: This appeal by the revenue is preferred against the order of the CIT(A), Faridabad dated 11.02.2016 pertaining to A.Y.2011-12. 2. The substantive grievance of the revenue read :- 1. Whether on the facts and in the circumstances of the case, the Ld. CIT(A) was right in law in de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 8D. The AO computed the disallowance at ₹ 1,31,66,791/-. 6. Assessee agitated the disallowance before the CIT(A) claiming that there is no exempt income. After considering this fact the CIT(A) deleted the disallowance. 7. Before us the DR supported the findings of the AO. There is no dispute that the assessee did not earn any exempt income during the year under consideration. This issue is now squarely covered in favour of the assessee and against the revenue by the decision of Hon ble Delhi High Court in the case of Cheminvest Limited in ITA No. 749/2014 order dated 02.09.2015 and also by the decision of the Hon ble Gujarat High Court in the case of Cortech Energy Private Limited 372 ITR 97. Respectfully following the decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elied upon by him in support of his contention. The AO had made an addition of ₹ 4,66,918/- on account of provision for earned leave on the ground that these provisions are contingent in nature and are not in nature of ascertained liabilities. The appellant, on the other hand, has given his arguments as well as various judicial pronouncements in relation to disallowance of provision for earned leave. I have perused the Judgement of Calcutta High Court in case of Exide Industries Ltd (2007) 292 ITR 470. The department has filed the SLP in this case and the same has been admitted with the following remarks: We further make it clear that the assessee would during the pendency of civil appeal, pay tax as of section 438(f) is on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8377; 1,36,56,114/- on account of differential in the raw material cost of Ethylene Vinyl Acetate (EVA). The appellant in its submissions has clearly explained the difference in the cost of Ethylene Vinyl Acetate (EVA) in the case of the appellant as well as in the case of Lakhani Rubber Udyog Pvt. Ltd. It is seen that the sister concern of the appellant i.e, Lakhani Rubber Udyog Pvt. Ltd. is engaged in manufacturing of hawai chhapal and the appellant company is engaged in manufacturing of shoes. It is the contention of the appellant that there are various qualities of Ethylene Vinyl Acetate (EVA) and resultantly the quality of Ethylene Vinyl Acetate (EVA) for shoes is of better quality, as compared to the quality used in Ethylene Vinyl Ace ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orted the findings of the AO. It is the say of the DR that during the assessment proceedings the assessee neither filed any details nor any bills/ vouchers in support of its claim. The DR further stated that the CIT(A) has held that the details were furnished before the AO and the AO has not given any cogent reason for rejecting the contention of the assessee, according to the DR this is not in line with the facts of the case as the assessee never produced any details. 18. We have carefully perused the orders of the authorities below. The AO while discussing the GP rate of the assessee made additions on account of differences in EVA and lumpsum additions of wages and estimated the GP addition. In our considered opinion once the AO has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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