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2012 (12) TMI 248 - AT - Income TaxDeduction u/s 80IA - interest from investments/ deposits - other income - held that:- the interest income has been earned from holding FDs and other term deposits from the surplus generated by the assessee in the earlier year therefore may not be the income earning or derived from the business of the assessee of generating power. - Decided against the assessee. MAT - The credit for minimum alternate tax availed by the assessee therefore could only be at best adjusted by the Assessing Officer was the sole issue insofar as there is no loss of revenue for the impugned Assessment Year when the assessee was required to pay only the minimum alternate tax. This credit has to be carry forward requires consideration by adjudication of the issue by the Hon’ble High Court. - Decided against the assessee. Disallowance on account of periphery development expenses - Held that:- The assessee’s business for incurring periphery development expenses for development of the area as defined by the Collector of the area in which charge the assessee carries out the work. Therefore, it was nobody’s case that the expenses have not been incurred as the amount has been paid to the Government authorities. - Expenditure are being incurred and claimed as business expenditure therefore cannot be disallowed insofar as the claim of the assessee of Rs.5 lakhs paid to the Collector, Bolangir is properly documented. - However, the sum of Rs.20,000 paid as donation to Jharsuguda District Kick Boxing Association, Belpahar Rs. 5,000.00, Organising Committee, Lakhanpur Block Football Championship Rs. 5,000.00, Binapani Yubak Sangha Rs.3,000. Tiger Club, Belpahar Rs.5,000 and V.S.S.Club, Belpahar Rs.2,000, all related to incurring of expenses which may or may not have been called for to be incurred by the assessee as per the requirement of peripheral development committee. Therefore, this amount of Rs.20,000 not relating to periphery development expenses are directed to be sustained as disallowable business expenditure as the assessee has not been able to establish the nexus for periphery development expenses in these cases. Disallowance on account of donation – Held that:- Assessee submitted a letter addressed by the Chief Minister acknowledging receipt of Rs. 20 lakhs as donation to the Chief Minister’s Relief Funds settles the issue that the assessee is entitled for 100% under the provisions of Section 80G - granting for continuous approval u/s.80G(2)(3HF) of the I.T.Act,1961 was issued by the CIT, Bhubaneswar on 26.2.2003 which has been placed on record - CIT(A) disallowed the claim for want of commercial expediency for incurring these expenses when he restored the issue to the file of the Assessing Officer to allow the claim u/s.80G on the basis of production of receipts which has now been produced. Approval was on 26.2.2003 for the impugned Assessment Year when the 80G claim was made for the Assessment Year 2004-05 - Assessing Officer directed to grant 100% deduction in accordance with the certificate granted by the CIT and acknowledge receipt of the Chief Minister
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