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2016 (3) TMI 1017 - AT - Income TaxTreatment to interest income - Held that:- We find that in assessment year 2005-06 and 2006-07 and also in assessment year 2009- 10, the Tribunal has restored back the matter to the file of the Assessing Officer for fresh decision with the direction to readjudicate the issue afresh in the light of the order of the State Government dated 03/04/80. Hence, in the present year also, we set aside the order of CIT(A) and restore the matter back to the file of the Assessing Officer for fresh decision in the light of the order of State Government dated 03/04/80. - Decided in favour of assessee for statistical purposes. Disallowance u/s 14A - Held that:- in the present case, the Assessing Officer has recorded his satisfaction with proper reasons that the assessee’s claim regarding the amount to be disallowed u/s 14A is not correct. At the cost of repetition, we again narrate the reasoning given by the Assessing Officer in the assessment order for the present year. In Para 5 of the assessment order, the Assessing Officer has stated that the computation of disallowance u/s 14A of the Act is not in accordance with the provisions of Rule 8D and thereafter, the Assessing Officer has worked out the disallowance as per Rule 8D of the Act. We have also discussed earlier in this order that if the assessee gives actual working of the amount of expenses incurred for earning exempt income then the same has to be examined by the Assessing Officer and before rejecting the same, the Assessing Officer has to give proper reasons but if the working of the assessee is of the estimated expenditure then in our considered opinion, such working itself is not as per Rule 8D because Rule 8D prescribes a particular manner and method for estimation of expenses incurred for earning exempt income and therefore, if actual detail and working is not made available by the assessee then there is no other option but to adopt the basis of estimation as per Rule 8D and since the working of the assessee regarding estimation of the expenses is not as per Rule 8D, the reasoning given by the Assessing Officer for not accepting the working of the assessee that the same is not as per Rule 8D, is cogent reasoning in our considered opinion and therefore, none of the various judicial pronouncements cited by Learned A. R. of the assessee is rendering any help to the assessee in the present case. - Decided against assessee Addition of amount received for up gradation and development of computer labs - Held that:- We find that this is the claim of the assessee that the amount in question was retained by Inotech for providing training and therefore, even if this amount is considered as income being grant received, then the expenses on account of training has to be allowed resulting into no effective addition and in view of these facts, we hold that this addition made by the Assessing Officer is not justified in the facts of the present case. The same is deleted. - Decided against revenue
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