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2014 (7) TMI 1170 - AT - Income TaxComputation of deduction u/s 10A - deduction of telecommunication charges and insurance expenses from the Export turnover for computing deduction - Held that:- We agree with the contentions of the assessee and accordingly direct the AO to deduct corresponding amount from total turnover also, if any amount is deducted from the Export turnover. See ITO Vs. Saksoft Ltd (2009 (3) TMI 243 - ITAT MADRAS-D ) Applicability of provisions of sec. 14A of the Act to the computation of “Book Profit” u/s 115JB - Held that:- The issue relating to applicability of provisions of sec. 14A of the Act to the computation of “Book Profit” u/s 115JB of the Act has since been decided against the assessee by Hon’ble Delhi High Court in the case of CIT Vs. Goetze (India) Ltd (2013 (12) TMI 607 - DELHI HIGH COURT ).In view of the above, we dismiss the grounds relating to the above said issue. Applicability of Rule 8D - Held that:- We are of the view that the AO was not right in applying the provisions of Rule 8D(2)(iii) of the IT rules in the instant case. At the same time, we have noticed that the assessee has carried out investment activities of purchasing, liquidating etc. and has also received dividend income. Hence, the contention of the assessee that it did not incur any expenditure is not acceptable to us also. Hence, we are of the view that it would be proper to make disallowance of a portion of general expenses in terms of of sec. 14A of the Act. Accordingly, we are of the view that a round sum disallowance of ₹ 25,000/- may be made to take care of sec. 14A of the Act and in our view, the same would meet the ends of justice. We order accordingly. The order of Ld CIT(A) stands modified accordingly.
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