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2018 (7) TMI 937 - AT - Income TaxSubsidy received by the assessee from Government of West Bengal under Incentive Scheme 1999 taxability - revenue or capital receipt - MAT computation - Held that:- Subsidy receipt is a capital receipt is not taxable under normal provision of Act. Though it is a capital receipt is not liable for consideration under book profit under MAT proceedings u/s 115JB of the Act. Order of the CIT(A) is set aside. The additional ground Nos. 1 and 2 raised by the assessee are allowed. Allowance of expenses made on account deferred revenue expenditure - Held that:- As relying in the guidance note issued by the Institute of Chartered Accountant of India on treatment of expenditure during construction period where it was recommended that the indirect expenditure incurred during the construction period should be capitalized as part of indirect construction cost to the extent to which the expenditure is indirectly related to construction or if incidental thereto. Thus delete the addition made on account of deferred expenditure. Ground nos. 1(a) and (b) raised by the assessee are allowed. Directing the AO to compute the disallowance @ 1% for the purpose of section 14A - Held that:- we find that the CIT(A) by placing reliance on the decisions of ITAT Kolkata in the case of Civil Engineers Enterprises Pvt. Ltd [2010 (8) TMI 975 - ITAT KOLKATA] directed the AO to disallow 1% of dividend income at ₹ 18,14,470/-. Therefore we find no infirmity in the order of CIT(A) . Ground no.2 raised by the assessee is dismissed. Deletion of disallowance made on account of loss for re-statement of foreign exchange confirmed 0 issue is covered by the consolidated order in favour of the assessee in its own case [2016 (5) TMI 479 - ITAT KOLKATA] addition made on account of freight charges - Held that:- the reason given by the AO for the disallowance is not tenable as the AO has not pointed out any reasonable reasons for the same. There is no doubt that the assessee had made short recovery from the customers but the reasons for the same were duly explained by the assessee. Accordingly the Ld. CIT(A) has given the relief to the assessee and on this point of view Ld. DR has not brought anything on record contrary to the findings of the Ld CIT(A). see assessee in its own case [2016 (5) TMI 479 - ITAT KOLKATA]
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