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2017 (9) TMI 1888 - ITAT PUNERemission or cessation of liability u/s.41(1) - discount received on pre-payment of deferred "Sales Tax Loan' - HELD THAT:- CIT(A) heavily relied on the Special Bench decision in the case of Sulzer India Ltd [2010 (11) TMI 728 - ITAT, MUMBAI]. Further, he demonstrated that the said decision of the Special Bench of the Tribunal was subsequently confirmed by the jurisdictional High Court of Bombay in the case of CIT Vs. Sulzer India Ltd. r [2014 (12) TMI 267 - BOMBAY HIGH COURT] - no contrary judgment was cited by the Revenue - decision of CIT-A confirmed - Decided against revenue. Disallowance u/s 14A - CIT- A confirmed allocating notionally the expenditure for earning Exempt income - assessee said he has excess interest free funds which should be presumed to have been invested in the exempt income, in which case there is no need for disallowance of interest u/s.14A r.w. Rule 8D and relied on the decision of HDFC Bank [2016 (3) TMI 755 - BOMBAY HIGH COURT] - HELD THAT:- It is in the interest of justice for both the parties that the issues relating to disallowance of expenditure u/s.14A r.w. Rule 8D(2) of the I.T. Rules, 1962, should be remanded to the file of the AO for fresh adjudication applying the said ratios of the judgments. AO shall grant reasonable opportunity to the assessee at the time of re-adjudication of the issues. Ground allowed for statistical purposes. Disallowance of share issue expenses - HELD THAT:- We find this issue has already been adjudicated by the Tribunal against the assessee in the own case for A.Y. 2006-07 [2012 (8) TMI 230 - ITAT PUNE] While deciding, Tribunal relied on the decision of Hon'ble Supreme Court in the case of Brook Bond India Ltd. [1997 (2) TMI 11 - SUPREME COURT]. Disallowance of income - difference between receipts as per online ITS data and receipt as per books - HELD THAT:- We find there is merit in the counsel's submission that the AO should examine each and every item of income/receipt which figures in the Form 26AS but not accounted as income of the assessee in the year under consideration. He should examine each and every such item and pass a speaking order after granting reasonable opportunity of being heard to the assessee in accordance with the set principles of natural justice. Accordingly, this part of the ground is allowed for statistical purposes. Disallowance of carbon credit expenses - assessee submitted that the Tribunal may consider reducing the sale price of the windmill to the extent of said ₹ 5 lakhs as the liability is on the assessee to incur the said amount - HELD THAT:- This argument is raised for the first time with an implication on the W.D.V. of the asset in the hands of the buyer of the asset. After hearing both the sides, we find it relevant to remand this issue to the file of the AO for fresh adjudication considering the aforesaid new argument raised by the Ld. Counsel for the assessee. Ground raised by the assessee is accordingly allowed for statistical purposes. Claim of deduction u/s.80IA(4) - Assessee demonstrated that the said claim of the assessee may now becomes infructuous in the light of the likely deletion of various additions, of course, if approved by the Tribunal or if no additions are repeated by the AO as a result of remand proceedings, if any, as directed by the Tribunal in this composite order - HELD THAT:- We are of the considered opinion that it is certain that some of the additions are likely to be deleted or reduced in the remand proceedings as ordered above. The cited decisions would help the assessee. For example - we have now statistically allowed the issue relating to disallowance u/s.14A r.w. Rule 8D of the I.T. Rules, 1962. There are certain other additions which are remanded for fresh adjudication by the AO. In a way, this ground becomes consequential to the findings of the AO in the remand proceedings. Therefore, we are of the opinion that, for the time being, this ground should be dismissed as infructuous. However, we direct the AO to consider the claim of the assessee, in case of positive profits, if any, at the end of the remand proceedings. Disallowance of IPO expenditure - HELD THAT:- As relying on Nimbus Communication [2011 (12) TMI 696 - BOMBAY HIGH COURT] IPO expenditure incurred in connection with issue of share. The initial public offer constitutes an allowable Revenue expenditure. Disallowance of claim u/s.80IA(4) - As per assesseeAO has notionally brought forward the losses of earlier years which was already set off against the profits of the earlier years by invoking the provisions of section 80IA(5) of the Act - HELD THAT:- As such treatment is not appreciated by the Tribunal in the case of Serum International Ltd. [2013 (1) TMI 688 - ITAT PUNE] and said decision of the Tribunal is in tune with the subsequent circular issued by the CBDT vide Circular No.01/2016 dated 01-05-2016. Considering the same, the CIT(A) granted relief to the assessee which is fair and reasonable. - Decided against revenue.
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