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2016 (7) TMI 815 - AT - Income TaxDisallowance u/s 14A - Held that:- We find that the issue involved is squarely covered by the Hon’ble Jurisdictional Calcutta High Court in the case of CIT vs R.R.Sen and Brothers (2013 (7) TMI 260 - Calcutta High Court) and accordingly direct the ld. AO to adopt 1% of the exempt income for making disallowance u/s 14A of the Act. - Decided partly in favour of assessee. Disallowance of provision of leave encashment u/s 43B(f) - Held that:- As decided in assessee’s own case for A.Y.2008-09 the provision made by the appellant company for meeting the liability incurred by it under the leave encashment scheme proportionate with the entitlement earned by employees of the company, inclusive of the officers and the staff, subject to the ceiling on accumulation as applicable on the relevant date, is entitled to deduction out of the gross receipts for the accounting year during which the provision is made for the liability. The liability is not a contingent liability. - Decided in favour of assessee. Disallowance u/s 14A of the Act could be made while computing the book profit u/s 115JB - Held that:- As already in ground no.1 herein above that 1% of exempt income be adopted for the purpose of disallowance u/s 14A of the Act. We held that the same disallowance be made while computing the book profit u/s 115JB of the Act as requested by the ld. AR. - Decided partly in favour of assessee.
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