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2019 (3) TMI 1662 - ITAT AHMEDABADDisallowance u/s 14A r.w.r 8D - HELD THAT:- CIT(A) has rightly granted relief to the assessee as there is no exempt income in the assessment year 2012-13 and we also draw support from the case of Corrtech Energy Ltd. [2014 (3) TMI 856 - GUJARAT HIGH COURT] wherein it is held that the Tribunal had recorded the finding of the fact that assessee did not make any claim for exemption of any income from payment of tax. Hence, no disallowance could be made u/s. 14A Addition u/s 41(1) on account of cessation of liability - HELD THAT:- As decided in BHOGILAL RAMJIBHAI ATARA [2014 (2) TMI 794 - GUJARAT HIGH COURT] there was nothing on record to suggest that there was remission or cessation of liability that too during previous year relevant to AY 2007-08. Whether in peculiar facts of case amount in question could not be added back in income of assessee as deemed income under section 41(1). Held, yes TDS u/s 194H - Addition u/s 40 (a)(ia) - HELD THAT:- Hon’ble Supreme Court has held in the case of CIT vs. Ahmedabad Stamp Vendors Association [2012 (9) TMI 298 - SC ORDER] has held that cash discount given for bulk purchase of stamps does not attract provisions of section 194H. In our considered opinion, CIT(A) has passed detailed and reasoned order and same does not require any kind of interference at our end. Thus, this ground of revenue is dismissed. Disallowance of claimed in respect of foreign exchange (Forex) loss - HELD THAT:- Loss recognized on account of foreign exchange fluctuation and same is subsisting liability and not merely a contingent or a hypothetical liability. Hon’ble Apex Court in the case of Woodward Governor ( [2009 (4) TMI 4 - SUPREME COURT] held “ loss suffered by the assessee on account of fluctuation in the rate of foreign exchange as on date of balance sheet as an item of expenditure, same to be allowed in favour of assessee.” Disallowance of interest on advances for purchase of land - HELD THAT:- Appellant in its written submission filed before AO has explained that it has acquired land from all the parties except one party in subsequent Assessment Year and Appellant has also submitted ledger account of such parties to show that land has been actually acquired from such parties hence observation of AO that Appellant has not purchased any land till date is incorrect. It is also observed that AO has not established any nexus between use of borrowed funds and above advances hence disallowance is made on presumption. In Appellant's case share capital and reserves are of ₹ 250.93 crores and interestfree loan from holding company is of ₹ 203.36 crores hence aggregate interest-free fund available with Appellant as on 31st March, 2012 is ₹ 454.29 crores and such fund is in excess of interest free advances given for acquisition of land for ₹ 1.73 crores. - Decided against revenue Addition on account of employees contribution to PF and ESIC - HELD THAT:- A.R. has fairly conceded that in view of the GSRTC Ltd.[2014 (1) TMI 502 - GUJARAT HIGH COURT]
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