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2014 (1) TMI 546 - ITAT COCHINDisallowance of proportionate amount of franchisee fee – Held that:- The nature of the expenditure should be determined objectively - The agreement entered by the assessee with M/s Ma Foi Management Consultants Ltd shows that the assessee has only acquired the license to act as the franchisee of the above said company - It is not a case of acquiring a trade name, which would fall in the category of Capital expenditure - The same is allowable as expenditure u/s 37(1) – Decided in favour of assessee. Disallowance of expenses relating to exempted income u/s14A – Held that:- Following CIT Vs. Dhanalakshmy Bank Ltd [2010 (10) TMI 806 - Kerala High Court] – The proportionate disallowance under section 14A should be limited to only interest liability and not overheads or administrative expenditure, which should be considered for disallowance under Rule 8D - The issue restored for fresh examination. Disallowance of medical expenses – Held that:- The assessee has claimed that the medical expenses were incurred on its employees - The assessing officer did not examine the said claim of the assessee - The AO had disallowed this expenditure for want of adequate details/explanations - The issue restored for fresh examination.
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