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2011 (1) TMI 39 - ITAT NEWDELHIDeduction u/s 80IA - inclusion of insurance / interest receipts for the purpose of section 80IA - business receipt- dis allowance u/s 14A - Held that: - the plea of the assessee regarding claim of deduction u/s 80IB in respect of insurance claim receipt, was accepted. The provisions of section 80IA are in para materia in section 80IB of the Act. "Spot king India Ltd." (2009 -TMI - 34367 - DELHI HIGH COURT) being a decision rendered by the jurisdictional High Court of Delhi, is, as such squarely applicable. - Khemka Container Ltd. (2004 -TMI - 10421 - PUNJAB AND HARYANA High Court) relied by the AO, distinguished. In the return of income filed, a suo moto disallowance of expenses to the tune of ₹ 173038 had been made by the assessee u/s 14A of the Act. In the assessment order, the AO made a disallowance of ₹ 3218475 by applying the method provided in Rule 8D of the I.T. Rules, 1962. This was done without pointing out any inaccuracy in the method of apportionment or allocation of expenses, as adopted by the assessee. - It was the case of the assessee that to earn such dividend income, no direct expenditure was required and no expenses were incurred to make investment of surplus amounts in mutual funds. The suo moto disallowance had, however, been made by the assessee keeping in consideration, the provisions of section 14A of the Act. - Revenue appeal dismissed.
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