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2011 (6) TMI 504 - ITAT, PUNEDisallowance u/s. 36(1)(iii) and 14A - interest free advances to sister concerns out of interest bearing funds - Held that:- The issue raised in the above grounds of the appeals are fully covered by the decision of Pune Bench of the Tribunal in the case of assessee itself for A.Ys. 2000-01 to 2004-05 following the decision in the case of CIT v/s. Reliance Utilities and Power Ltd. (2009 (1) TMI 4 - HIGH COURT BOMBAY) that the assessee having a interest free funds of its own with a further availability share capital calls for no disallowance - set aside the matter to the file of the A.O to decide the same afresh - in favour of assessee statistical purposes. Expenditure for construction of Dome type structure in jogging park for advertisement - Revenue v/s Capital - Held that:- As no benefit of enduring nature was created out of the structure since after construction of it, the same was donated to the PMC. Thus expenses incurred on the construction are revenue in nature within the meaning of Section 37 - in favour of assessee. Disallowance of 20% of motor vehicles and telephones expenses - Held that:- In absence of maintenance of log book for vehicles movement and register for telephone calls, the possibility of personal user of these facilities cannot be ruled out. the claimed expenditure can be allowed if the assessee company is able to establish that these facilities of vehicle and telephone were allowed to its employees as perquisites as per terms of the agreement with them. Restrict the disallowances to 10% - partly in favour of assessee. Depreciation claim - Held that:- Allow the claimed depreciation on the vehicles undisputedly purchased from the funds of the assessee company for its business purposes - in favour of assessee. Non deduction of TDS - disallowance u/s 40(ia) - Held that:- The claim of the assessee that it had subsequently paid the TDS alongwith interest u/s 201 the issue needs fresh consideration after verification of certain basic fact. This verifiable material fact is, as to whether the TDS was paid before the filing of the return u/s. 139(1) for the year under consideration -n favour of assessee for statistical purposes.
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