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2014 (11) TMI 719 - AT - Income TaxDisallowance u/s. 14A – Held that:- The AO has applied Rule 8D while computing the disallowance u/s. 14A – as decided in GODREJ AND BOYCE MFG. CO. LTD. Versus DEPUTY COMMISSIONER OF INCOME-TAX AND ANOTHER [2010 (8) TMI 77 - BOMBAY HIGH COURT] - the applicability of Rule 8D is prospective with effect from 2008-09 - at the same time a reasonable disallowance has to be made - since the AO has accepted 10% of the salary paid to the G.M (Finance) as a reasonable disallowance – the AO is directed to disallow 10% of the salary paid to G.M. (Finance) for all the years under consideration – Decided partly in favour of assesse. Denial of deduction u/s 80IA – Held that:- The requirement of filing the audit report along with return of income is declaratory and if the assessee complies with the same before completion of the assessment and offered a satisfactory explanation for his failure to submit the same in time, the ITO may consider the same and examine the claim of the assesse – relying upon CIT Vs Shivanand Electronics (Bombay) [1993 (9) TMI 30 - BOMBAY High Court] - once the audit report is filed before framing of the assessment, the requirement of the provisions stands complied - the claim of deduction u/s. 80IA cannot be denied because the assessee did not file the audit report along with return of income – Decided in favour of assesse.
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