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2014 (10) TMI 423 - AT - Income TaxAddition u/s 14A and 80HHC made – DEPB benefits – Held that:- No fresh investments were made during the year - CIT(A) was partly influenced by the market research and day to day analysis of market trends for taking investment decisions - Since no fresh investment decision has been taken, therefore, considering the role of administrative machinery in collection of dividend - the nature of interest received is to be examined by assessing officer and to the extent the interest income is to be treated as income from business, only 90% of the interest is to be excluded while computing deduction u/s 80HHC, treating the same as business income and not 100% - thus, the matter is to be remitted back to the AO for fresh adjudication. Addition of commission paid – Held that:- As decided in assessee’s own case for the earlier assessment year, it has been rightly held that the legislative intention of the explanation inserted in the statute by the Finance (No.2) Act, 1998 with retrospective effect from 1.4.1962 was also considered by the Tribunal in the light of budget speech of the Finance Minister as well as Circular no. 772 dated 23.12.1998 issued by the Board and on such consideration, it was held that the said Explanation was not applicable to the facts of the assessee’s case - the disallowance made by the AO as deleted by CIT(A) is upheld on account of payment of commission by invoking explanation to Section 37(1) – Decided against revenue. Deduction u/s 80HHC – Inclusion of income – Held that:- Explanation (baa) to section 80HHC specifically defines profits of the business and, only those profits of business can qualify for deduction u/s 80HHC as are contemplated in the explanation - the profits of the business as computed under the head ‘profits and gains of business or profession’ forms the basis out of which the items mentioned in clause (1) & (2) are to be excluded – the order of the CIT(A) is upheld – Decided against revenue.
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