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2015 (1) TMI 511 - AT - Income TaxDeduction u/s. 80IA - whether was not allowable in respect of income from investment/deposits as the income was not derived from business of generation of electricity - Held that:- This issue has been decided by the Tribunal against the assessee in earlier assessment year. However, the appeal has been filed before the Hon'ble Jurisdictional High Court and, therefore, in order to keep the issue alive, these grounds may be decided as per the decisions of earlier assessment years for the reasons given in assessment year 2003-04 that the contention of the assessee that Interest received for delayed payment of power bills by M/s. GRIDCO is not borne out of the facts on record. The assessee has not been able to show any nexus between impugned interest received by it with interest payments - Decided against assessee. Peripheral development expenses disallowed - Held that:- The assessee had not clarified that the expenditure had been incurred in respect of area where industrial activity was being carried out. Therefore, the facts for assessment year 2009-10 wherein CIT(A) has directed to restrict the disallowance to an amount of ₹ 25,41,312/- on account of peripheral development because the amount paid through Corporation office at Bhubaneswar was not in connection with business are distinguishable from the facts for assessment year 2007-08 - Decided against assessee. Entertainment expenses - dis allowance of 20% of such expenses on estimate basis - Held that:- AO has disallowed 20% of the claim of entertainment expenses on adhoc basis without pointing out specific item, which allegedly were personal in nature. The assessee is a Government of Odisha Undertaking. Thus being a legal entity, no disallowance is called for particularly on the ground of the same being personal in nature - Decided in favour of assessee. Disallowance under section 80-IA - assessee's claim is that if disallowances are sustained correspondingly eligible business profits will increase - Held that:- There was no ground before ld CIT(A) in this regard. Therefore, this issue does not arise out of the order of ld CIT(A). Thus, this ground is misconceived and, therefore, dismissed - Decided against assessee. Period expenses disallowed - Held that:- Since the AO has himself observed that these expenses crystalised in assessment year 2007-08, therefore, he is directed to allow these expenses in assessment year 2007-08 while giving effect to our order for assessment year 2007-08 vide ITA No.554/Ctk/2012 - Decided in favour of assessee for statistical purposes. Disallowance of periphery development - Held that:- No reason to interfere with the order of ld CIT(A) directing the AO to allow ₹ 33,12,500/- being the amount paid to Collector for peripheral development. He observed that whether the total amount of ₹ 1,08,77,070/- included the amount of ₹ 33,12,500/- as claimed by the assessee was to be verified by the AO. Accordingly, he directed the AO to verify the same and recompute the disallowance accordingly. However, in sum and substance, he confirmed the action of the AO following the assessment year 2004-05, by excluding an amount of ₹ 33,12,500/- and confirming the addition of ₹ 75,64,170/- - Decided against assessee. Disallowance of entertainment expenses - Held that:- Since the AO has himself observed that these expenses crystalised in assessment year 2007-08, therefore, he is directed to allow these expenses in assessment year 2007-08 while giving effect to our order for assessment year 2007-08 vide ITA No.554/Ctk/2012 - Decided in favour of assessee for statistical purposes.
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