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2018 (6) TMI 1662 - AT - Income TaxDisallowance under Peripheral Development Expenses - allowable deduction u/s.37 - AO observed that the peripheral development claimed by the assessee are not incurred wholly and exclusively incurred for the business purpose - HELD THAT:- The expenditure claimed by the assessee has been incurred wholly and exclusively for business purposes as envisaged by the assessee however, the AO has to verify the claim as to whether the peripheral expenditure in the corporate office is for the particular area of the employees or as a whole. Accordingly, we respectfully following judicial precedence and the order of the Tribunal and we restore this issue to the file of AO to verify the nature of expenditure incurred on the peripheral areas and decide the same on merits. This ground of appeal is allowed for statistical purposes. Disallowance of interest on disputed Govt. duty (Electricity duty and water charges) - HELD THAT:- As decided in own case [2012 (12) TMI 632 - ITAT CUTTACK] direct the AO to allow the claim of the assessee on account of interest on disputed Govt. duty (Electricity duty and water charges) and this ground of assessee is allowed Disallowance of additional depreciation u/s.32(1)(iia) - HELD THAT:- We find the issue is similar to the . [2018 (4) TMI 1754 - ITAT CUTTACK ] present facts and circumstances of the case, and we respectfully follow the above judicial precedence of this bench of the Tribunal and remit the matter to the file of AO for reconsideration of claim of additional depreciation u/s.32(1)(iia) of the Act. Accordingly, we allow this ground of assessee for statistical purposes. Disallowance u/s.14A - HELD THAT:- In various decisions, we find that the Tribunal has restored the disputed issue to the file of AO for re-examination and reverification and apply the provisions of Section 14A r.w.rule 8D and in the instant case, the issue being similar, we find that the AO has not complied with the mandatory requirement of Section 14A (2) of the Act read with Rule 8D (1) (a) of the Rules and we respectfully follow the above judicial decision of the Tribunal and remit the disputed issue to the file of AO for re-examination and verification and to decide the issue on merits after complying the mandatory requirement of the provisions of Section 14A of the Act and this ground of appeal is allowed for statistical purposes. Treatment of short term and long term capital gain - AO has treated the short-term and long-term capital gain earned by the assessee as business income of the assessee - HELD THAT:- We agree with the ratio of judicial decision applicability to the present case and we direct the AO to treat the income under the capital gains and not as business income and allow this ground of appeal of the assessee. Non-deduction of credit amount under provision for leave encashment disallowed in the past assessment years u/s.43B(f) - AO made disallowance on account of provision for leave encashment u/s 43B(f) of the Act, on the ground that the same is allowable only if the said expenditure has actually been paid by the assessee - HELD THAT:- As relying on its earlier order has restored the disputed issue to the file of AO
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