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2018 (3) TMI 391 - ITAT PUNEExclusion of Freight and Insurance from the Total turnover for the purpose of quantifying the deduction u/s.10B - Held that:- We have already decided this issue against the Revenue and in favour of the assessee relying on the decision of the Tribunal in assessee’s own case [2014 (4) TMI 1091 - ITAT PUNE]. Nature of expenses - Product Development Expenditure - revenue or capital expenditure - Held that:- As decided in assessee's own case [2016 (8) TMI 1047 - ITAT PUNE] we do not find any infirmity in the findings of Commissioner of Income Tax (Appeals) in accepting the product development expenditure as revenue in nature. Allowability of deduction paid by the assessee to the Coast Guard u/s.37(1) - Held that:- As decided in assessee's own case [2016 (8) TMI 1047 - ITAT PUNE] the intention of celebrating “Cost Guard Day’ is to spread awareness of the service which operates with Indian Navy during external aggression and independently guards Indian cost line from intruders during peace. The business motive behind contributing the fund was the assessee has taken godowns on lease from M/s. Sovereign Pharma Pvt. Ltd. at Daman for storage of vaccines and Indian Cost Guard has its huge base at Daman. The expenditure has been incurred towards discharge of corporate social responsibility. Disallowance u/s.14A of the Act r.w. Rule 8D(ii) - assessment u/s 153A - Held that:- AO has no jurisdiction over the assessee since he does not have any incriminating material in his possession for granting jurisdiction to make addition u/s.14A of the Act Allowability of deduction with reference to the Wealth Tax paid by the assessee for the purpose of computing book profits u/s.115JB - Held that:- As relying on case of Usha Martin Industries Ltd. [2000 (3) TMI 170 - ITAT CALCUTTA-E] we agree with the contention of the learned authorised representative of the assessee that a provision made for wealth-tax cannot be equated to any liability towards income-tax and accordingly, cannot be disallowed while computing the book profit by invoking Clause (a) of the Explanation to Section 115JA(2) of the Act. In any case, this is the case where no incriminating material was seized by the Revenue during the search action connecting to the disallowability of Wealth Tax payment qua the book profits computation. - Assessee appeal allowed.
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