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2011 (3) TMI 1012 - AT - Income TaxDis-allowance u/s 14A by treating them as having been incurred for earning tax-free dividend - Held that:- assessee has demonstrated that there were no expenses incurred in making investment in shares which yielded the tax free dividend income. In A.Y. 2004-05 on identical facts this Tribunal has already held that no dis-allowance u/s 14A is called for. Hence, dis-allowance made by the AO should be deleted - Decided in favor of assessee' Dis-allowance of provision for warranty - Held that:- Supreme Court in the case of Rotork Controls India Pvt. Ltd. (2009 - TMI - 33420 - SUPREME COURT OF INDIA - Income Tax) held that in a case where there was warranty obligation such obligation was part of the sale price and stood attached to the sale price of the product. Warranty obligation is a present obligation as a result past events resulting in an out flow of resources and a reliable estimate could be made of the amount of obligation. If it is so made it is a liability allowable as deduction u/s 37. Accordingly the deduction claimed by the assessee be allowed Transfer of Lifts Field Operations undertaking - appellant prays that in the absence of ascertainable cost of acquisition / cost of improvement of the undertaking, the machinery for computation of capital gain fails, and therefore capital gains are not chargeable at all - sale or exchange - Held that:- In present case, transfer of the undertaking by the assessee consequent to scheme of arrangement approved by Hon'ble Bombay High Court cannot said to be a sale of undertaking by the assessee. Therefore, we hold that computation provisions fail in the present case and consequently there can be no capital gain that could be brought to tax Addition - adjustment in the value of stock u/s. 145A by including the unutilized Cenvat credit in closing stock of raw materials - assessee has valued its inventory exclusive of taxes, duties etc. paid or incurred on such closing stock - Held that:- Assessee has also not claimed deduction on account of excise duty on closing stock. Thus the assessee had duly given effect to the provisions of section 145A as well as the provisions section 43B. We accordingly direct that the addition made be deleted. Addition of income under various heads such as technical services, interest, dividend as per AIR - AO based on the AIR database noticed that income tax on aforesaid has been deducted at source by the person making payment to the assessee but the assessee has not offered such receipts to tax - Held that:- Issue is remanded back for fresh consideration by the AO in the light of the reconciliation provided by the assessee.
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