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2023 (7) TMI 400 - AT - Income TaxDisallowance u/s 14A - Mandation of recording satisfaction - suo motu disallowance made by assessee - HELD THAT:- After taking into consideration the nature of business of the assessee and the expenditure, the Bench is of considered view that the findings arrived by the Co-ordinate Bench in [2022 (10) TMI 82 - ITAT DELHI] are squarely applicable as held where suo motu disallowance has been made, the Assessing Officer is required to form ‘satisfaction’ in terms of Section 14A of the Act for higher disallowance which has not been made and thus the formula provided for quantification of disallowance under Rule 8D would not automatically apply.Disallowance cannot exceed the actual expenditure incurred in relation to the earning of the exempt income - Decided in favour of the assessee. Computation of the book profits u/s 115JB of the Act by invoking provisions of Section 14A - Revenue could not dispute the settled proposition of law that the disallowance u/s 14A of the Act is a notional disallowance and therefore, by taking recourse to Section 14A of the Act the amount cannot be added back to book profits under clause (f) of section 115JB of the Act - See Vireet Investment (P.) Ltd. [2017 (6) TMI 1124 - ITAT DELHI] and Sobha Developers Ltd. [2021 (1) TMI 378 - KARNATAKA HIGH COURT] - Decided in favour of the assessee. Allowability of the deduction u/s 80-IAB with regard to car parking rental - HELD THAT:- As decided in M/s. Unitech Developers and Projects Ltd. [2022 (10) TMI 82 - ITAT DELHI] in the light of documentary evidences placed by way of notifications and instructions from competent authorities, it is manifest that car parking rentals have been reckoned as authorized operation in SEZ. In the light of express guidelines issued by the Government as referred to and relied upon, we are of the view that the income from car parking rental would squarely qualify for deduction u/s 80IAB - Decided in favour of the assessee. Allowability of 80-IAB reduction on interest income is claimed by the assessee - HELD THAT:- This issue covered in favour of the assessee by the judgment of Meghalaya Steels Ltd. [2016 (3) TMI 375 - SUPREME COURT] - The assessee has claimed that the fixed deposit receipts were created as the Collateral security which are covered by the aforesaid observations and there appears to be no denial to aforesaid arguments and accordingly the grounds arising out of this issue stand decided in favour of the assessee.
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