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2011 (3) TMI 1040 - AT - Income TaxDisallowance - Expenses allegedly attributable to its exempt dividend income -in terms of sec. 14A of the Act read with Rule 8D of I.T. Rules - the ld. A/R that no facts have been brought on record attributing the expenses to exempted dividend income - However, it is a fact that some expenses must have been incurred by the assessee while earning exempted dividend income - As the A.O. while allowing exemption of dividend income from tax, he has not considered the disallowance required to be made in view of sec. 14A of the Act - The decision of Hon'ble Bombay High Court in the case of Godrej and Boyce Mfg. Co. Ltd. , wherein it has been held that Rule 8D of the Rules is prospective in nature and is applicable from assessment year 2008-09 - The case before us is undisputedly relates to assessment year 2006-07 and, therefore, Rule 8D of the Rules is not applicable to the assessment year under consideration - Hence, issue be restored to the A.O. to re-examine and consider the disallowance to be made in respect of the exempted dividend income shown by the assessee in view of Sec. 14A of the Act after giving due opportunity of hearing to the assessee and considering such details as may be filed before him - Hence, the appeal taken by the assessee is allowed for statistical purposes by restoring the issue to the A.O. Enhanced assessee's income by reducing claim of deduction u/s. 80-IA - the assessee's appeal challenging enhancement of income by Rs.1,12,08,623/- by way of reducing its claim of deduction u/s. 80-IA of the Act on the ground that electricity duty @ 9 paise per unit is to be excluded from the average landed cost of electricity as computed by the assessee, the ld. A/R fairly conceded that the said issue is covered against the assessee by the decision of I.T.A.T., Kolkata Bench in the case of Graphite India Ltd. vs. DCIT dated 06/12/2007, - Decided in favour of assessee. Interest under secs. 234A and 234B - Hence, the assessee's appeal in respect of charging of interest under secs. 234A and 234B of the Act are consequential and no specific adjudication is called for.
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