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2015 (8) TMI 549 - AT - Income TaxDisallowance u/s. 14A read with rule 8D - Held that:- In this case, the AO has straight away applied Rule 8D, which is not applicable for the year under consideration in the light of the decision given by Hon'ble Bombay High Court in the case of Godrej & Boyce Mfg. Company Ltd. (2010 (8) TMI 77 - BOMBAY HIGH COURT). Even in case Rule 8D is applicable still the same cannot be applied straight away ignoring the calculation given by the assessee. The disallowance under Rule 8D can be made if AO is not satisfied with the correctness of the claim made by the assessee in respect of such expenditure. Hence, in view of our above observation, this issue is restored back to the file of AO with a direction to give the assessee a reasonable opportunity to place on record all relevant facts including its accounts and examine the computation calculation made in this regard by the assessee regarding the suo-motu disallowance of ₹ 25,34,001/-. Disallowing claim u/s. 35D towards 1/5th of the share issue expense incurred on account of expansion of business - Held that:- Assessee has vehemently contended that the activities of the assessee company falls in the definition of industrial activity. However, he could not rebut the contention that as per the provisions of section 35D of the Act, the deduction is admissible in connection with the issue for public subscription of shares or debentures of a company. However, in the case in hand the assessee had increased the share capital by way of private placement with its holding company M/s. Aditya Birla Nuvo Ltd, hence, deduction under section 35D of the Act is not allowable to the assessee. This issue is accordingly decided against the assessee. Disallowance on account of leave salary - Held that:- Respectfully following subsequent decision of the Tribunal on this issue in the case of Essar Exploration & Production India Ltd.,(2012 (8) TMI 910 - ITAT MUMBAI), we restore this issue to the file of A.O with similar directions.
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