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2016 (8) TMI 1586 - AT - Income TaxDeduction u/s. 80IB(10) - housing project ‘Kumar Puram’ developed by the assessee - HELD THAT:- Assessing Officer in the assessment year 2001-02 had raised similar objections in disallowing the claim of deduction u/s. 80IB(10) on the housing project ‘Kumar Puram’ developed by the assessee. In appeal filed by the assessee before the Tribunal, the Tribunal decided the issue in favour of the assessee. The Commissioner of Income Tax (Appeals) in the impugned order has followed the order of Tribunal i [2013 (2) TMI 925 - ITAT PUNE] and accepted the claim of the assessee in assessment years under appeal. DR has not placed on record any material to controvert the findings of Tribunal. In the absence of any contrary material, we find no infirmity in the order of CIT (Appeals) on this issue. Accordingly, the findings of CIT (A) on this issue are affirmed and the ground raised by the Department against allowing claim of deduction u/s. 80IB(10) of the Act to the assessee is dismissed. Disallowance u/s. 14A r.w. Rule 8D - HELD THAT:- Assessee has earned exempt income from share of profit from the partnership firm and dividend. The disallowance has been made by the AO u/s. 14A read with Rule 8D. The Hon'ble Jurisdictional High Court in the case of Godrej and Boyce Mfg. Co. Ltd [2010 (8) TMI 77 - BOMBAY HIGH COURT] has held that Rule 8D would apply from assessment year 2008-09. Some reasonable disallowance has to be estimated u/s. 14A for earning income exempt from tax. The Commissioner of Income Tax (Appeals) has restricted the disallowance to 10% of the exempt income - The assessee has accepted the same. We do not find any infirmity in the order of CIT (Appeals). Accordingly, the issue raised by the Department against restricting the disallowance u/s. 14A to 10% of the exempt income is devoid of any merit. Accordingly, this ground of appeal of the Revenue is dismissed. Depreciation on Motor Cars - AO disallowed the claim of depreciation on motor cars on the ground that twin conditions for claiming depreciation u/s. 32 assets should be used for the purpose of business and assets should be owned by the assessee, are not satisfied - HELD THAT:- Commissioner of Income Tax (Appeals) has allowed the claim of the assessee by placing reliance on the decision of the Co-ordinate Bench of the Tribunal in the case of Rohan Builders and Developers Pvt. Ltd. [2012 (6) TMI 319 - ITAT PUNE]. We do not find any infirmity in the order of CIT (Appeals) in accepting the claim of the assessee. Thus, in view of the facts of the case and the decision of Co-ordinate Bench, the ground of appeal raised by the Department against allowing of depreciation on motor vehicles registered in the name of Directors of the assessee company is dismissed. Deduction u/s. 80IA(4)(iii) - assessee has complied with all the conditions laid down under the Industrial Park Scheme, 2008 and thus, the assessee is eligible to claim deduction u/s. 80IA(4)(iii) - HELD THAT:- In the present case the project of the assessee was initially approved under IPS 2002 on 15-02-2005. The assessee had claimed deduction u/s. 80IA(4)(iii) in assessment year 2006-07 which was allowed to the assessee. The assessee could not complete the project within the time frame specified in IPS 2002 i.e. 31-03-2006. The assessee applied for notification of the project under IPS 2008. The project was notified by CBDT on 09-07-2010. After notification of the project under IPS 2008, the eligibility of deduction has to be seen with respect to the new scheme. Thus, in view of the facts of the case and the observations of the Co-ordinate Bench of the Tribunal we find no merit in the contentions of the ld. DR that the assessee is not eligible to claim deduction u/s. 80IA(4)(iii) in assessment years under appeal. Second objection of the Revenue is that minimum 30 units were not established as per the scheme - The order of the Tribunal in the case of M/s. Kolte Patil Developers Ltd. Vs. Dy. Commissioner of Income Tax [2015 (3) TMI 363 - ITAT PUNE] further strengthens the case of assessee in allowing the deduction u/s. 80IA(4)(iii) of the Act. Accordingly, the ground of appeal raised by Department against allowing deduction u/s. 80IA(4)(iii) to the assessee is dismissed. Disallowing the claim of assessee with respect to interest expenditure pertaining to interest free advances given to various parties - HELD THAT:- As in view of the absence of vital information, we are of the considered view that this issue needs a revisit to the file of Assessing Officer to ascertain the financial position of the assessee at the time of giving advances. In case own interest free funds of the assessee are sufficient to cover the advances at the time of making such advances, no disallowance should be made in view of the decision of Hon'ble Jurisdictional High Court in the case of Commissioner of Income Tax Vs. Reliance Power Utility Ltd [2009 (1) TMI 4 - BOMBAY HIGH COURT] Accordingly, ground No. 3 raised in the appeal of the assessee for assessment year 2007-08 is allowed for statistical purpose.
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