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2017 (12) TMI 1411 - ITAT KOLKATATDS u/s 194C - Disallowance u/s 40(a)(ia) - disallowance against advertisement material - Held that:- As in assessee’s own case for A.Y.2009- 10 the assessee had made payments for purchase of material and had admittedly not supplied the materials to the job worker and hence the same would not fall under the definition of ‘work’ as per section 194C of the Act, hence there is no violation of section 194C warranting any disallowance u/s 40(a) (ia) of the Act. - Decided against revenue Addition u/s 14A read with Rule 8D - Held that:- No disallowance U/s 14A of the Act need to be made by invoking the provisions of Rule 8D (2) (ii) of the Rules as the investments admittedly are business expediency investments and strategic investments. Since the investments were held to be business expediency investments, there is no case for making any disallowance by adopting Rule 8D (2) (iii) of the Rules also Addition being interest attributed to alleged working capital employed in Wind Mill Unit although the Unit’s Balance Sheet reflects outflow to Consolidated Account - Deduction u/s 80IA - Held that:- We note that it is not a cash flow statement at all. Accounting Standard-3 issued by ICAI provides the method to draw the cash flow statement having operating investment and financing activities. Cash flow statement should explain on what account the cash is coming in the organization and on what account cash is going out side the organization. This statement shows ‘electricity sale’ in sources and ‘decrease in debtors’ in application which does not have any scene. What includes in ‘further debts’ of ₹ 14,13,885/- has not been explained. We also note that figures explained to assessing officer and figures mentioned in the above cited cash flow statement does not tally. Considering the factual position explain above, we are of the view that order passed by the ld CIT(A) does not have any infirmity and hence we confirm the order passed by ld CIT(A).
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