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2016 (2) TMI 904 - AT - Income TaxDeduction under section 80IA - initial assessment year selection - Held that:- Choosing of initial assessment year for claiming deduction under section 80IA of the Act in a block of ten years out of fifteen years is with the assessee i.e. it is the option of the assessee to choose the initial assessment year for claiming deduction under section 80IA of the Act. Further, the loss claimed by the assessee in respect of eligible business is to be set off against the income of the assessee from other ineligible business as in respect of assessment years and there is not need to notionally carry forward these losses up to the initial assessment year and write off the same out of the profits of eligible business. Disallowance u/s 37 - Held that:- CIT (Appeals) has given detailed finding with respect to each and every individual item of the expenses incurred under the head ‘business promotion’ and as regards the disallowance sustained by the learned CIT (Appeals), the assessee has not been able to give any evidence to prove that these expenses were incurred wholly and exclusively for the purposes of business. Wherever required, the CIT (Appeals) has given relief to the assessee. We hereby confirm the order of the learned CIT (Appeals) in this regard. Disallowance of rental expenses - Held that:- We are in agreement with the findings of the learned CIT (Appeals) that even though the sister concerns have not paid their part of rental expenses for using the premises but to arrive at the correct computation of taxable income of the assessee, it would be necessary to claim deduction on account of rental expenditure to that extent which is only attributable to the assessee company
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