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2014 (1) TMI 1709 - AT - Income TaxDisallowance u/s 40A - Held that:- The additional evidence filed which was claimed to be in support of payment for the services rendered, is in fact, require verification by AO. Ld. CIT(A) did not examine any of the issues, but, simply rejected , even though, Assessee placed detailed submissions before him. In view of this, we are of the firm opinion that the issue requires re-examination by AO afresh. For this purpose, we set aside the orders on this issue and restore it to the file of AO for fresh consideration after giving due opportunity to Assessee to substantiate the claim. - Decided in favour of assessee for statistical purposes. Disallowance u/s 14A - Held that:- We are unable to agree with the opinion of Ld. CIT(A). It is very clear from the judgment of the Hon’ble Bombay High Court in the case of Godrej and Boyce Mfg. Co. Ltd., Vs. DCIT & Anr.,(2010 (8) TMI 77 - BOMBAY HIGH COURT ) that Rule 8D is not applicable to the impugned assessment year. So, the calculations prescribed under the rule cannot be invoked in the guise of reasonable disallowance. Therefore, we set aside the orders on this issue and restore the issue to the file of AO to determine the reasonable disallowance on facts and considering law on this issue. - Decided in favour of assessee for statistical purposes. Carry forward loss - Held that:- As it is observed that Assessee claims set off carry forward losses, if total income becomes positive. This aspect was not contested before Ld. CIT(A) and there is no finding on this issue. This being a legal ground, we direct the AO to examine the record and allow necessary set off of carried forward losses. - Decided in favour of assessee for statistical purposes. Calculation of interest u/s 234B is mandatory, AO is directed to verify the calculations, to be in accordance with the provisions of the Act.
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