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2019 (7) TMI 2002 - AT - Income TaxDeduction u/s 80IA - losses of eligible unit of years earlier to the initial year opted - HELD THAT:- As decided in own case A.Y. 2012-13 and also the decision of Velayudhaswamy Spinning Mills (P) Ltd. [2010 (3) TMI 860 - MADRAS HIGH COURT] as held that the claim of the appellant for deduction is well within the spirit of the law and accordingly hereby direct the AO to allow the claim for deduction made by the appellant company U/s.80IA(4) - Decided in favour of assessee. Disallowance u/s 14A r.w.r.8D - Sufficiency of own funds - AO had noted that the assessee has claimed interest expenses which includes general interest remaining interest / bank interest considered as directly related to the export / import and assessee did not make any disallowance u/s.14A - HELD THAT:- We find from the order that the ld.CIT(A) that the assessee is having a owned funds to the extent of 436 crores as on 31.03.2013 investments made by the assessee to generate the exempt income only to the extent of 8.05 crores. Therefore, the ld.CIT(A) reasonable presumed that assessee has invested only own funds no borrowed funds. By considering the facts and circumstances of the case, we find that there is no error passed in the order passed by ld.CIT(A), in deleting addition - Decided in favour of assessee. Disallowance of commission in respect of turnover of earlier years - assessee has explained before the Assessing Officer that the commission expenditure accounted for as and when debit note is raised by the broker - HELD THAT:- On appeal, the ld.CIT(A) gave a finding that the expenses incurred by the AO is not doubted by the AO and only case of the AO is that these expenses relates to earlier years not related to current year. We find that the ld.CIT(A) after considering the detailed explanation given by the assessee and also observations made by the Assessing Officer gave a find that these expenses are genuine and has to allowed even in current year also. We find no reason to interfere with the order passed by the ld.CIT(A), therefore this ground raised by the Revenue is dismissed. Disallowance of welfare expenses - AO noted that the assessee has not fully vouched and some of the expenses were supported by the handmade vouchers not having complete address and names of the recipient - CIT(A) restricted the disallowance to 50% - HELD THAT:- As CIT(A) partly granted the relief to the assessee, we find no reason to interfere with the orders of passed by the ld.CIT(A), therefore this ground of appeal raised by the Revenue is dismissed. Allowability of expenses related to conveyance and traveling, motor car expenses, telephone expenses, membership fee expenses - CIT(A) restricted from 15% to 10% granted relief to the assessee - HELD THAT:- We find that the relief granted by the ld.CIT(A) by restricting disallowance from 15 % to 10% is reasonable and justified and no interference is called for. Therefore, ground raised by the Revenue is dismissed. Allowable business expenditure - Interest paid on delayed payment of service tax is in penal nature - HELD THAT:- We find that the expenditure incurred to the assessee during the course of the business and therefore which has to allowed as a business expenditure. In view of the above, we find no reason to interfere with the orders passed by the ld.CIT(A), therefore ground raised by the Revenue is dismissed. Disallowance of staff welfare expenses - HELD THAT:- CIT(A) by considering the entire business carried by the assessee and also by considering the nature of the expenses and also considering the expenses incurred in various places restricted the allowance to 50% granted - We find that no reason to interfere with the order passed by the ld.CIT(A). Disallowance on account of office expenses - HELD THAT:- We find that the claim of the assessee is that he had incurred office expenses in respect of three office at Surat, Delhi and Mumbai and four divisions of factories. Most expenses incurred by the assessee has submitted by the ld.Counsel for the assessee incurred by the cheque whenever payment made by cash, the same is supported by the vouchers. The ld.CIT(A) by considering all the facts and examine the details he has restricted the disallowance we find no reason to interfere with the order passed by the ld.CIT(A), therefore ground raised by the Revenue is dismissed.
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