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2013 (9) TMI 1146 - ITAT MUMBAIEligible income for allowance of deduction under section 80 IB - Held that:- Scrap generation was part of manufactu - ring activity of the industrial undertaking run by the assessee.Therefore, reversing the order of the FAA,we decide ground in favour of the assessee. Exclusion of the income from the 80IB deduction on the ground that it was apportionable to the payment of processing charges - Held that:- As decided in assessee's own case for the AY 2007-08 Job-work got done under own, supervision of the assessee can be considered to,be a part of the manufacturing process of the assessee and in this vies of matte, dyeing and printing although got done as job-work can ‘qualify as manufacturing process. Thus we decide ground in favour of the assessee. Disallowance of interest u/s.36 (l)(iii) on the ground that the same should be considered as relatable to acquisition of capital assets - Held that:- We find that share capital,reserves and surplus as well as work-in-progress for the AY under consideration had gone up drastically as compared to the figures of the last AY.We also find that there was decrease in loan payment by the assessee.While deciding the issue against the assessee these vital factors were not considered by the AO/FAA.But,it is also a fact that the assessee had not filed required details before the departmental authorities.Therefore,we are of the opinion that matter needs further veri -fication.So,in the interest of justice matter is remitted back to the file of the AO for fresh adjudication of the issue in question.He is directed to afford a reasonable opportunity of hearing to the assessee. Disallowance under section 14A r.w.Rule 8D - Held that:- Provision of Rule 8D of the Rules are not applicable for the year under consideration.But,it is also a fact that the Hon’ble High Court has in the case of Godrej and Boyce Mfg. Co. Ltd. [2010 (8) TMI 77 - BOMBAY HIGH COURT ] has held that a reasonable disallowance could be made after considering the facts of the case concerned.In our opinion, in the interest of justice matter should be remitted back to the file of the AO for fresh adjudication.
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