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2018 (5) TMI 1882 - ITAT DELHIAddition of foreign travel expenses - allowable business expenses - HELD THAT:- The assessee, in the business of manufacturing and sales of PU Foam, PU Foam products, coir mattresses, cushion, etc. Expenditure incurred on visits to Australia related to an Australian Company Joyce Foam Pvt Ltd which was also in the similar business as that of the assessee. Therefore, it can safely be concluded that the acquisition was not for a new business but expansion of existing business. Expenditure incurred is legitimate business expenditure and deserves to be allowed. Deduction u/s 80IB - Reallocation of head office expenses - HELD THAT:- As considered the relevant documentary evidences brought on record in the form of paper book in the light of Rule 18(6) of the ITAT Rules, 1962. Exhibit 36, 44,53 and 62 exhibit financial statements of four eligible units. It can be seen that in all these eligible units, the Head Office account was showing debit balance which was converted into credit balance only when profit for the year was transferred. Therefore, it cannot be said that the eligible units had borrowed funds from the Head Office. Further, we find that the debtors of the eligible units were realized by the Head Office and accordingly, necessary entries were passed through Head Office account. Considering the factual matrix exhibited in the statement of account, it can be stated that the eligible units have not borne any financial charges and therefore, no allocation of financial charges is to be made between these eligible units. We do not find any error or infirmity in the finding of the ld. CIT(A) . Addition on account of delayed payment of employees contribution of provident fund - HELD THAT:- We find that the Hon'ble Jurisdictional High Court of Delhi in the case of CIT Vs. AIMIL limited [2009 (12) TMI 38 - DELHI HIGH COURT] has decided the issue in favour of the assessee and against the Revenue. Disallowance u/s 14A of the Act r.w.r 8D - HELD THAT:- We find that the assessee has not earned any exempt income during the year under consideration. Thus this grievance of the assessee has to be allowed following the judgment of the Special Bench of the Tribunal in the case of Cheminvest Ltd Vs. CIT I. [2009 (8) TMI 126 - ITAT DELHI-B] which has been affirmed by the Hon'ble High Court of Delhi [2015 (9) TMI 238 - DELHI HIGH COURT]. Also see CORRTECH ENERGY PVT. LTD. [2014 (3) TMI 856 - GUJARAT HIGH COURT] - Decided in favour of assessee.
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