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2017 (12) TMI 1121 - ITAT MUMBAIDisallowance u/s. 14A r.w. Rule 8D - Held that:- We noted that the CIT(A) has given a clear cut finding of fact that investment of the assessee, which is amounting to ₹ 585 crores, is less than the assessee’s capital reserve and accordingly following the decision in the case of CIT vs. Reliance Utilities and Power Ltd. (2009 (1) TMI 4 - BOMBAY HIGH COURT) and CIT vs. HDFC Bank Ltd. [2014 (8) TMI 119 - BOMBAY HIGH COURT] deleted the disallowance in respect of interest but directed the AO to compute 0.5% of the average investments and while computing the 0.5% of the average investments in the subsidiary company directed to exclude and dismissed the additional ground taken by the assessee for excluding from calculation of 0.5% of the average investment on which there is no tax free income is earned following the order of the CIT(A) for A.Y. 2010-11. The CIT(A) also following the order for A.Y. 2010-11 directed the AO to exclude while computing 0.5% of the average investment expenditure involved in administrate expenses. Expenditure on account of replacement of electricity meters - nature of expenditure - revenue or capital expenditure - Held that:- After hearing the rival submissions we noted that this Tribunal in the case of the assessee for A.Y. 2010-11 confirmed the order of the CIT(A) deleting the said disallowance as the said issue has been decided in favour of the assessee by the decision of the Hon'ble High Court in assessment years 2001-02, 2002-03, 2003-04, 2006-07, 2007-08 and 2008-09. Provisions of Section 115JB applicability to the assessee company as the Accounts of the assessee are prepared according to provisions of Electricity Supply Act - Held that:- The assessee is following the accounting policies under the Electricity Supply act and prepared its accounts in view of those very policies. Following those very policies, the accounts in accordance with part II & III of Schedule VI of the Companies Act are not applicable at all. Once there is no possibility for preparing the accounts in accordance with the part II & 11 of Schedule VI of Companies Act then the provisions of sec. 115JB cannot be forced.
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