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2015 (9) TMI 596 - AT - Income TaxDisallowance u/s 14A r.w.r 8d - Held that:- The issue arising before us is identical to the issue before Tribunal in Rainy Investment Pvt. Ltd. Vs. ACIT (2013 (2) TMI 602 - ITAT MUMBAI ) and following the same parity of reasoning, we hold that no disallowances under section 14A of the Act is to be made in respect of the investment made by the assessee in share application money. However, relying on the order of the Tribunal we restore this issue back to file of the AO for verifying the claim of the assessee that the such investment is in share application money as on 31.03.2008 and 31.03.2009. In case the stand of the assessee is found to be correct then no disallowance is warranted under section 14A read with Rule 8D of the Rules. In respect of the second aspect of the issue we are in conformity with the finding of the Tribunal in Rainy Investment Pvt. Ltd Vs. ACIT (supra) that the deletion of addition under section 14A on account of share application money was not for the reason that it did not yield any tax free income for the relevant year, but for the reason that it was incapable of generating any such income. Accordingly, we hold so. - Decided in favour of assessee for statistical purposes. Addition of vehicle expenses debited to profit & loss account treating the same as expenses for non-business purposes - Held that:- No merit in the orders of the authorities below as this is the case of the Pvt. Ltd. Company which was engaged in carrying on the business. During the year under consideration admittedly the assessee had earned income from leasing of properties. Though no construction activity was carried out by the Assessee but it does not warrant the disallowance of 75% of the expenses for non business purpose. Reversing the order of the CIT(A), we direct the AO to allow the expenditure on account of vehicle expenses, petrol expenses and depreciation on motorcar.- Decided in favour of assessee. Claim of brought forward business losses disallowed - Held that:- The said adjustment was not allowed by the AO which in turn was also not allowed by CIT(A), though ground of appeal was raised by the assessee in this regard. Following the principles of natural justice, we deem it fit to revert this issue back to the file of the AO, to verify the claim of assessee and allow the adjustment of brought forward losses in accordance with law. - DEcided in favour of assessee for statistical purposes.
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