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2016 (10) TMI 1349 - AT - Income TaxDeduction u/s.80IA - HELD THAT:- A coordinate Bench of this Tribunal in the case of Assessee’s own case in respect of AY 2003-04 confirmed the finding of the learned CIT(A) to the effect that the Assessee is entitled to the deductions under section under section 80-IA of the Act. Rule of consistency, as laid down in CIT Vs. N.P.Mathew [2005 (5) TMI 13 - KERALA HIGH COURT] demands that the department should adopt consistent approach on an issue in respect of the same Assessee in different years. While respectfully following above we find that the findings of the learned CIT(A) on this aspect are proper and legal. No need to interfere with the same. Hence these grounds are dismissed. Disallowance of the expense u/s. 14A - HELD THAT:- These appeals relating to the assessment years 2004-05 and 2005-06 to which years Rule 8D of the Rules has no application. Rule of consistency, as laid down by the Hon’ble Kerala High Court in CIT Vs. N. P. Mathew [2005 (5) TMI 13 - KERALA HIGH COURT] demands that the same approach should be adopted in respect of the same assessee in different years. While respectfully following the decision of the coordinate bench of this Tribunal referred supra, we hold that the findings of the Ld. CIT(A) in the impugned orders on this ground needs no interference. Disallowance of the telephone expenses to an extent of 5% - Addition by the AO on the ground that the expenses on account of personal calls by the employees of the company were debited and also the expenses for residential phones and mobile phones were claimed - HELD THAT:- On this aspect, the assessee relied on the decisions reported in Sayaji Iron & Engg. Co. [2001 (7) TMI 70 - GUJARAT HIGH COURT] and Intersil India Ltd. [2004 (10) TMI 595 - ITAT MUMBAI] and it is submitted that since the assessee is a corporate entity, there cannot be any personal expenditure. It is further submitted that in respect of AY 2005-06 the Ld. CIT(A) deleted such an addition based on ad hoc disallowance in the telephone expenses and the department has not preferred any appeal against such finding. On a careful consideration of the orders of the authorities below the judgments cited by the assessee and also in view of the fact that as against the deletion of the disallowance of a portion of telephone charges the department preferred no appeal, we find that the order of the Ld. CIT(A) is consistent with the judgment of the Hon’ble Kerala High Court in N. P. Mathew, supra and we uphold the same. This ground is dismissed accordingly. Allowability of club expenditure - HELD THAT:- As balance amount relating to club services may be allowed as business expenditure. In view of the decision of Hon’ble Supreme Court in CIT Vs. United Glass Manufacturing Co. Ltd. [2012 (9) TMI 914 - SUPREME COURT] the membership expenses of the club incurred by the assessee are allowable as deduction u/s. 37(1) - AR fairly conceded that club membership is to the individual whereas the expenditure relating to club services and entrance fee are for business purpose. In these circumstances, we uphold the disallowance of the expenditure relating to the club membership for both the assessment years. However, disallowance in respect of the club services are the entrance fee are relatable to the United Glass Manufacturing Co. Ltd., [2012 (9) TMI 914 - SUPREME COURT] we delete the disallowance relating to the club services and entrance fee. To this extent these two grounds of cross objections of assessee are allowed in part.
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