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2013 (9) TMI 1071 - AT - Income TaxAddition u/s 14A - interest attributable to investment in shares - interest on term loans, bank charges and guarantee fees - Held that:- The investments were in the form of shares of subsidiary companies as part of the financial restructuring plan approved by the Government of Gujarat which was integral to the demerger - decision of Hon'ble Bombay High Court pronounced in the case of Godrej & Boyce Mfg. Co. Ltd. Muimbai vs. Dy.CIT [2010 (8) TMI 77 - BOMBAY HIGH COURT] - AO is duty bound to determine the expenditure which has been incurred in relation to income which does not form part of the total income - AO should provide a reasonable opportunity to the assessee of producing its accounts - Remanded back for statistical purpose. Addition made u/s. 43B - contribution to PF - Held that:- AO has not properly examined the facts of the case - date of payments as declared by the assessee - assessee produced all details before CIT(A) - held that there was no payment beyond the due date but deposited in advance - Decided in favor of Assessee Income over expenditure materialized during the year but not offered for taxation in case of demerger - whether the expenses and income could be considered as income and expenses of the successor - Held that:- the income arising after the demerger is the responsibility of the “resulting company” to be taxed as per law - assessee to place the relevant evidence before the AO through which it can be demonstrated that amount had already been offered to tax - Remanded back for statistical purpose. Addition of ₹ 6,60,52,000/- being total legal and preparation fees treated as capital expenditure - Held that:- None payments can be categorized as capital in nature since no enduring benefit was derived and nor any asset was brought into existence - expenditure was connected with the business activity of the assessee - Decided in favor of Assessee Exclusion under provisions for gratuity - which is an unascertained liability for computation of book profit u/s.115JB - Held that:- provision for gratuity was made on acturial valuation; hence, it was not an unascertained liability - Decided in favor of Assessee Adjustment of book profit u/s. 115J - Held that:- AO to do afresh adjudication - Remanded back for statistical purpose.
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