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2016 (11) TMI 1040 - AT - Income TaxDeduction u/s 80IB - Held that:- The assessee is eligible to claim deduction under section 80-IB(10) dehors the area of commercial establishment. In so far as the built-up area of residential units C-5, D-5 and 19 bungalows is concerned the issue is set aside to the Assessing Officer to decide the issue in line with the directions given by the co-ordinate Bench of the Tribunal while adjudicating the appeals in the preceding assessment years. Disallowance of deduction under section 14A read with rule 8D in respect of share of profit received by the assessee from partnership firm - Held that:- Disallowance under section 14A is with respect to expenditure incurred for earning tax-free income. The share of profits from partnership firm is exempt from tax under section 10(2A) of the Act in the hands of the partner. Therefore, it is tax-free income in the hands of the assessee. The assessee has not made any disallowance for earning tax-free income. The Assessing Officer has rightly invoked the provisions of section 14A read with rule 8D for making such disallowance. Circular No. 8 of 2014 rather clarifies the reason as to why the share of profits of a partnership firm is exempt from tax in the hands of partner. The interpretation drawn by the learned counsel for excluding share of partnership firm from scope of section 14A is not sustainable. We do not find any infirmity in the order of Commissioner of Income-tax (Appeals) in upholding the disallowance made by the Assessing Officer. Addition u/s 69 - Held that:- Addition has been made on the basis of the CIB information received. As per the contentions of the learned counsel for the assessee, the assessee neither owns the property mentioned in the information received from CIB nor has it sold any such property during the period relevant to the assessment year 2011-12. The learned counsel has also placed on record the letters from the office of the Sub-Registrar, Karveer, Kolhapur, in support of his contentions. We are of the view that this issue needs a revisit to the Assessing Officer for verification. The Assessing Officer after verification of records and the letters placed on record by the learned counsel from the office of the Sub- Registrar, Kolhapur, shall decide this issue afresh, in accordance with law.
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