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2011 (9) TMI 187 - AT - Income TaxDeduction u/s 80P - co-operative society - Non deposit of TDS before filing of return - dis-allowance u/s 40(a)(ia) - Held that:- the assessee placed reliance on the submissions before the CIT (Appeals) and pointed out that TDS of ₹ 73,217/- was deducted out of payment of ₹ 5,44,940/- and related to the period prior to 3 1.3.2004 and the provisions of section 40 (a)(ia) of the Act inserted w.e.f. 1.4.2005 were not applicable to such amounts. - Matter remanded back for verification of details. Dis-allowance of expenses u./s 14A - majority of the investments were made prior to 1994 and on the said investments no dividend has been received by the assessee during the year. - The CIT (Appeals) followed the observations of the Hon’ble Punjab & Haryana High Court in CIT Vs. Winsome Textile Industries Ltd.(2009 -TMI - 75303 - PUNJAB AND HARYANA HIGH COURT), under which it was laid down that where there is nothing to indicate that investment in purchase of shares was made out of borrowed funds, no disallowance was warranted u/s 14A of the Income Tax Act. - Held that:- The total dividend income received by the assessee was ₹ 4,00,410/- against which disallowance of ₹ 12,73,462/- by invoking the provisions of section14A of the Act is not warranted. - Decided in favor of assessee. Deduction u/s 80P - held that:- if the return of income is revised and deduction u/s 80P (2) (e) is recomputed, it ultimately effects other deductions as well. - The Assessing Officer has nowhere stated that the deduction was not allowable or wrongly claimed by the appellant. Not filing a revised computation cannot lead to denial of a genuine claim where the return was duly revised and claim duly recomputed. - Decided in favor of assessee.
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