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2022 (7) TMI 1476 - AT - Income TaxDisallowance of bad debts in respect of six Government undertakings - As submitted that the assessee was incapacity on account of the fact that the assessee was a non function company and the record of the assessee companies are not available at that time, therefore the requisite details were not filled before the lower authority - HELD THAT:- These six companies happens to government companies and dues pertains to supply of electricity to these companies, we deem it appropriate to remand back the matter to the file of the AO with the direction to pass a fresh assessment order, after affording opportunity giving to the assessee. Needless to say that the assessee shall produce all the documents in support of the claim at the first hearing and shall not take any undue adjournment in the matter. Disallowance u/s 14A - disallowances, was confirmed by the CIT(A) by applying the formula given in Rule 8D(iii) r.w.s 14A @0.5% of the average value of investment in respect for which is exempt from the tax - HELD THAT:- Recently, in the case of Williamson Financial Services Ltd. [2022 (7) TMI 451 - ITAT GAUHATI] had the occasion to examine the above said provision and also the aspect whether the recent amendment in section 14A was clarificatory in nature and hence, have a retrospective applicability. After examining the details, the co-ordinate Bench had came to the conclusion that the amendment to section 14A was clarificatory in nature and therefore, it is required to be applied retrospectively even to the pending appeals before the Tribunal. The amendment in section 14A is retrospective, hence matter is restored back to the file of Assessing Officer with a view to re-examine the issue in the light of newly amended Section 14A read with applicable rules and decide accordingly. Appeal of the assessee is allowed for statistical purposes.
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