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2017 (3) TMI 1667 - ITAT MUMBAIAdditions made on account of difference between the original and the revised return - Held that:- Once the AO was given a chance to rebut the evidences produced by the assessee, there was no justification for raising the ground of admitting additional evidences by him - since FAA has followed the procedure has laid down by law the ground raised by AO is dismissed - Decided in favor or of assessee. Relief in respect of claim of reversal of excess interest capitalised - Held that:- In original return the assessee had capitalised the interest and in revised return treated it as revenue expenditure - since AO had not commented upon the claim made by the assessee while filing the remand report, neither he had not brought any evidence on record to prove that expenditure was of capital nature - ground raised by AO is dismissed - Decided in favor or of assessee. Material cost variance and exchange rate variance allowance in the revised return - Held that:- As already discussed the issues of furnishing of additional evidences, calling for remand report by the FAA, and offering of no comments by the AO in the report about the various items of income/ expenditure - since the claim of the assessee is supported by the audited accounts - expenditure under both the heads are allowed - Decided in favor of assessee. Loss on pursuance of fixed assets and intangible assets - Held that:- We find that the assessee itself had stated that amount in question was not allowable. Therefore, in our opinion,the FAA was not justified in allowing the claim. Reversing his order, we decide ground number five in favour of the AO. Whether the cost of insuring the project has to be capitalised in the books of account? - Held that:- the expenses incurred by the assessee were for running the project - FAA had disallowed 50% of the expenditure incurred under the head insurance expenses - thus there is no contention with AO that project was a new project and the expenses were to be capitalized - ground raised by AO is dismissed - Decided in favor of assessee. Addition in respect of the electricity duty - Held that:- Payment made by the assessee was on account of inspection charges, that same was allowable as revenue expenditure, that the same was outside the purview of section 43B of the Act. Set off of brought forward losses/ unabsorbed depreciation allowable - Held that:- There was a demerger of MSEB and trifurcation into three new entitles, including that of appellant - thus in terms of section 72A( 4) r. w.s. 2(19AA) of the Act, the appellant was entitled for benefit of set off of balance b/f. losses / depreciation of MSEB against its income - Decided in favor of assessee.
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