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2014 (7) TMI 1270 - AT - Income TaxDisallowance being written off as irrecoverable - allowable deduction u/s 37 - Held that:- CIT(A) has not given cogent reasoning while upholding the order of the Assessing Officer and he has simply stated that the amount in question being TDS cannot be said to be business expenditure of the assessee company and therefore, the same could not be allowed. According to us, the order of CIT(A) is non-speaking one as it contains no reasoning. In the absence of reasoning, the order cannot be upheld - restore this issue to the CIT(A) with a direction to decide the same as per fact and law after providing due opportunity of being heard to the assessee Disallowance out of foreign travel expenses - Held that:- The expenses related to foreign travel of Shri Aditya Bhartia, his wife Payal Bhartia and his father Radhe Shyam Bhartia. Based upon the findings for A.Y. 2007-08, the Assessing Officer held that there was no justification for foreign travel of Smt, Payal Bhartia and Shri Radhe Shyam Bhartia, Accordingly, he disallowed ₹ 4 lacs treating the same as non-business expenditure, which was confirmed by the CIT(A). Taking over all view and in the interest of justice, we restrict the disallowance to ₹ 2 lacs. Disallowance of the claim u/s.80IB(3)(ii) - Held that:- CIT(A) was justified in rejecting the claim of the assessee following the decision of similar issue decided by the Tribunal in Samruddhi Industries Ltd. (2011 (3) TMI 696 - ITAT, PUNE) holding that the assessee is not entitled as it did not continue SSI during the assessment year under consideration. This reasoned finding of CIT(A) needs no interference from our side. We uphold the same. Allowability of MAT Credit - Held that:- CIT(A) erred in not adjudicating the ground No.6 of the assessee. The learned Departmental Representative could not dispute the same. So in the interest of justice, we restore this issue to the file of CIT(A) with a direction to decide the same after providing due opportunity of being heard to the assessee. Allow the deduction u/s.80IA(4)(iv)(a) without deducting brought forward loss or unabsorbed depreciation prior to initial year on notional basis Disallowance of deduction u/s.35(2AB) - Held that:- The approval u/s.35(2AB) of the Act has been accorded to R & D unit of assessee company from 01.04.2009 to 31.03.2012 which entitles the assessee to claim weighted deduction u/s 35(2AB) from A.Y. 2010-11. Relying upon clear cut finding of Hon'ble Delhi High Court in the case of Apollo Tyres Ltd. (2010 (4) TMI 48 - DELHI HIGH COURT) the action of the Assessing Officer denying the deduction u/s. 35(2AB) of the Act was rightly upheld by the CIT(A). As directed Assessing Officer to restrict the disallowance u/s. 35(2AB) of the Act to ₹ 85,39,848/-. This reasoned finding of CIT(A) needs no interference from our side. We uphold the same. Disallowance on account of foreign travel expenses - AO made disallowance on account of non-business expenditure and the same was upheld by the CIT(A)- Held that:- A similar issue in assessee's own case for A.Y. 2008-09 has been decided vide para 5 of this order. Facts being similar, so following the same reasoning and taking all facts into consideration, we restrict this disallowance to 2,70,000/-.
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