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2015 (9) TMI 279 - AT - Income TaxAddition invoking Ss. 36(1)(iii) and 40A(2)(b) - Held that:- As decided in assessee's own case [2015 (7) TMI 361 - ITAT PUNE] there is no question of disallowance of interest on account of interest free advances given to related parties. It is a reverse case wherein the assessee has obtained the loan from related parties by paying exorbitant rate of interest for which the Assessing Officer disallowed the excess interest paid to the related parties by invoking the provisions of section 40A(2)(b) of the I.T. Act. Since the assessee itself has agreed for the addition of ₹ 33,37,059/- to tax being excess interest paid to the related parties covered u/s.40A(2)(b), therefore, the CIT(A) in our opinion was fully justified in upholding the addition made by the Assessing Officer. - Decided against assessee. Disallowance u/s 14A r.w.r. 8D - Held that:- As decided in assessee's own case [2015 (7) TMI 361 - ITAT PUNE] Since the assessee itself had admitted that it has incurred certain expenses although the same is negligible which cannot be correctly ascertained and since certain additions were made during A.Y. 200607 and 200809 by the Assessing Officer u/s.14A and nothing has been brought on record as to the outcome of the same including the quantum, therefore, we do not find any infirmity in the order of the CIT(A) upholding the disallowance made u/s.14A r.w. Rule 8D for the impugned assessment year. - Decided against assessee. Disallowance of foundation day expenses being excessive - Authorised Representative of the assessee agreed for disallowance of 20% of the aforesaid expenses - Held that:- The assessee itself has agreed before the AO for disallowance of 20% of such expenses which according to the AO was on the higher side. Nothing was brought before us to show that there was no acceptance by the assessee for such offer or the assessee was in possession of relevant bills and vouchers justifying such expenditure. We therefore uphold the order of the CIT(A) on this issue and the ground raised by the assessee is dismissed. - Decided against assessee. Adhoc disallowance of various expenses - Held that:- We direct the AO to restrict such disallowance to 5% of the expenses claimed as against 10% disallowed by him and upheld by the CIT(A) - Decided partly in favour of assessee.
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