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2016 (5) TMI 1417 - AT - Income TaxDisallowance u/s. 14A - sufficiency of own funds - Held that:- The assessee has demonstrated that own funds available with it is more than the investment made hence there is no requirement of making any disallowance out of interest expenditure. The view taken by the assessee is supported by the decision of Hon'ble High Court rendered in the case of CIT Vs. HDFC Bank Ltd. (2014 (8) TMI 119 - BOMBAY HIGH COURT ). Further the assessee has made fresh investment in two mutual funds and most of the shares have been brought forward from the earlier year. Under these set of facts, we are of the view that the disallowance u/s. 14A may be restricted to 2% of the dividend income earned by the assessee Addition made to the value of closing stock by invoking provisions of section 145A - Held that:- Assessee invited our attention to the paper book, wherein the assessee has prepared the profit and loss account both under exclusive method and inclusive method. Through this statement, the assessee has demonstrated that Net profit disclosed by the assessee remains the same under both methods. This statement shows that there would be no effect on the profit even if exclusive method is followed. We noticed that the Assessing Officer has not examined this statement put forth by the assessee.Accordingly, we are of the view that this issue requires fresh examination at the end of the Assessing Officer Disallowance of corporate membership fees - Held that:- This issue is covered in favour of the assessee by the decision of Hon'ble Delhi High Court in the case of Samtel Colour Ltd. (2009 (1) TMI 26 - DELHI HIGH COURT ) and also by the decision of P&H High Court in the case of M/s. Groz Beckert Asia Ltd. (2013 (2) TMI 375 - PUNJAB & HARYANA HIGH COURT). Setting off of brought forward losses and unabsorbed depreciation - Held that:- We direct the Assessing Officer to examine the contentions of the assessee and allow relief in accordance with law.
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