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2013 (11) TMI 823 - AT - Income TaxAllowance of deduction u/s 80IA of the Income tax Act - Income from sale of VSAT equipment – Held that:- These equipments are essential equipments for enabling assessee to the telecommunication services. The Govt. has put up various restrictions on import of such items because of security reasons. If the assessee is unable to provide these items to its customer then it might not be possible for it to provide telecommunication services – Held that:- Following the judgment of the ITAT in the assessee’s own case in the previous year, it was held that Considering the nature of equipments and their relation to the nature of services provided by the assessee, the receipt received by the assessee for supply of these items is inextricably links to the business of its telecommunication services. The A.O. is not justified in excluding these receipts – Deduction allowed u/s 80IA as the situation in this year does not change – Decided against the revenue. Computation of disallowance under Rule 8D read with Section 14A of the Income tax Act – Held that:- Following the Hon'ble Bombay High Court in the case of Godrej & Boyce Manufacturing Co. Ltd. [2010 (8) TMI 77 - BOMBAY HIGH COURT], it was held that The provisions of Rule 8D of the Income tax Rules which have been notified with effect from 24 March 2008 shall apply with effect from Assessment year 2008-09 - In view of Hon'ble Mumbai High Court judgment, there is no dispute that Rule 8D is applicable prospectively from A.Y. 2008-09 onwards, however, since the assessee has not filed any details of expenses on earning from old investment of Rs. 80 lacs, set aside the orders of authorities below and restore the matter back to the file of AO to decide the same afresh in accordance with law after affording an opportunity of being heard to the assessee.
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