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2017 (4) TMI 1528 - AT - Income TaxAddition being interest on mobilization advance - HELD THAT:- Assessee being a government undertaking is been following a system of accounting as per which all the items of income and expenditure are treated as accrue only after the approval is granted by competent authority. Further, the coordinate bench deleted the above addition. Therefore, respectfully following the decision of the coordinate bench in assessee’s own case for assessment year 2008-2009 we also direct the AO to delete the above addition. In the result, we reverse the finding of the Ld. CIT (A) and allow ground No. 1 of the appeal of the assessee. Disallowance u/s 14A r.w.r. 8D - HELD THAT:- According to the provisions of section 14A(2), the Ld. assessing officer before invoking the applicability of Rule 8D should have explained as to why the voluntary disallowances or no disallowances made by the assessee was unreasonable and unsatisfactory. We failed to find any such satisfaction recorded by the Ld. assessing officer. The satisfaction is mandatory in view of the judicial precedents of the jurisdictional High Court laid down before us by the Ld. authorized representative. Therefore, respectfully following the judicial precedent of the jurisdictional High Court we direct the Ld. assessing officer to delete the disallowance u/s 14A of the income tax act applying the provisions of Rule 8D of the Income Tax Rules, 1962. Addition on protective basis - HELD THAT:- As the disallowances been deleted in assessment year 2008 – 09 the addition is required to be confirmed in this year. Disallowance of the assessee’s claim of deduction supplier period expenses even when the assessee was following the market system of accounting - CIT(A) has deleted the above addition following the decision of the Hon’ble high court in assessee’s own case - HELD THAT:- DR could not point out any infirmity in the order of the Ld. 1st appellate authority in following that decision of the Hon’ble high court in assessee’s own case. The coordinate bench as well as the Ld. first appellate authority has also dealt with issue of disallowance of the prior paid expenses and held in favour of the assessee. In view of this we do not find any infirmity in the order of the Ld. CIT(A), in deleting the about disallowance. In the result, appeal of the revenue is dismissed.
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