Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (5) TMI 801 - ITAT HYDERABADDisallowance u/s 14A - as per assessee he has not earned any dividend income and has not claimed any exemption - Held that:- Hon'ble Madras High Court in the case of Redington (India) Ltd., Vs. Addl. CIT [2017 (1) TMI 318 - MADRAS HIGH COURT] have held that the disallowance u/s. 14A cannot be made where there is no exempt income during the relevant assessment year. Therefore, we set aside the order of Ld.CIT(A) and direct the AO to delete the addition made by him. Ground is allowed. Weighted deduction of expenditure u/s. 35(2AB) - Held that:- CIT(A) directed the entire amount to be allowed without noticing the said difference. Since there is a mistake in the direction of CIT(A), we modify the same and direct the AO to allow the amount to the extent of 100% u/s. 35(1) as directed in AY. 2008-09 and balance of the claim is to be disallowed. AO can modify the order accordingly. No reason to interfere with the direction to allow the amount which was not certified by the DSIR to be considered for allowance u/s. 35(1). With reference to weighted deduction, we have already modified the direction of the CIT(A) in assessee’s appeal. In view of that, ground of Revenue is partially allowed. In nut shell, assessee is entitled to claim uncertified amount at 100% u/s 35(1) and the excess claim of weighted deduction to that extent is to be disallowed. AO is ordered accordingly. Disallowance of 25% amounting on WDV - Held that:- As fairly admitted that the order of CIT(A) is in compliance to the order of the ITAT in earlier year and the matter is pending before the Hon'ble High Court as far as this claim is concerned. Since the order is in compliance to the order of ITAT in earlier year, we do not find any reason to interfere with the direction of CIT(A). In view of that Ground No. 4 is rejected. Claim u/s. 10B - Held that:- The claim of 10B will be considered allowed and the demand if any cannot be claimed from assessee. Since the order of CIT(A) is in tune with the findings of the ITAT in earlier year, there is no need to interfere with the said order. Ground of Revenue on this issue stands rejected.
|