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2017 (3) TMI 685 - ITAT MUMBAIAddition u/s 14A r.w.r 8D - Held that:- Rule 8D had no applicability for the year under consideration.The assessee had produced evidences to show that the loan taken by it was not used for investment purposes.As the loan was utilised for specific business purposes therefore,there was no justification for upholding the interest disallowance. We find that during the year under consideration the assessee had sufficient own funds for making investment. Therefore,following the judgment of Reliance Utilities(2009 (1) TMI 4 - BOMBAY HIGH COURT) we hold that the FAA had wrongly upheld the disallowance under the head interest expenditure. We find that the assessee, on its own,had made disallowance of 1%. The Hon’ble Bombay High Court in the case of Godrej Agrovet [2015 (3) TMI 651 - BOMBAY HIGH COURT] had held that disallowance of 5% in the earlier years i.e. up to the AY. 2007-08 was reasonable. Respectfully following the above,we direct the AO to restrict the disallowance to 5% of the exempt income. Applying the provisions of section 50 of the act for determination of full value of consideration in relation to sale of leasehold interest in plot at Jalgaon and Dombivali - Held that:- Provisions of section 50 were not applicable to leasehold land/building. See Commissioner of Income Tax Versus M/s. Greenfield Hotels & Estates Pvt. Ltd. [2016 (12) TMI 353 - BOMBAY HIGH COURT ] Computation of Short-Term Capital Gain (STCG) derived from transfer of units of any equity oriented mutual fund - Held that:- During the course of hearing before us it was stated that the AO had levied the tax on STCG at the rate of 30% (plus applicable surcharge)as against the rate of 10% (plus applicable surcharge). We find that the FAA has not passed and speaking order in that regard stating that issue raised by the assessee is not arising out of the assessment order. Calculation of taxes is made in the tax demand notice and if the AO does not apply correct rate of taxes, it is duty of the FAA to decide the issue. Therefore, we direct him to adjudicate the issue , raised before him , by passing and speaking order i.e. to decide the rate of taxes applicable to STCG for the year under consideration. Third ground of appeal is allowed in favour of the assessee, in part.
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