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2017 (1) TMI 561 - AT - Income TaxDisallowance u/s 14A read with rule 8D - Held that:- As given the fact that the lenders take all their precautions to ensure the end use, which is on record, it is reasonable to assume that these borrowings have been used for the stated purposes. The assessee has given reasonable evidence, as would be normally possible in such a situation, and, in the light of such evidence, there is no reason to resort to the presumption, leave aside reaching the conclusion, that these borrowings for specific purposes have been used in making investments in question. As regards inadequacy of disallowance, even during the course of proceedings before us, learned Departmental Representative could not demonstrate that the disallowance offered by the assessee suo motu is inadequate. In view of these discussions as also bearing in mind entirety of the case, we are of the considered view that authorities below were indeed in error in sustaining the impugned disallowance - Decided in favour of assessee Addition of expenses disallowed u/s 14A while computing book profits u/s. 115JB - Held that:- We uphold the grievance of the assessee and direct the Assessing Officer not to make any disallowance under section 14A while computing book profit under section 115JB. See Sobha Developers case [2015 (2) TMI 940 - ITAT BANGALORE] - Decided in favour of assessee Disallowance of foreign travel expenditure - 75% time on the trip was used for personal purposes of the director - Held that:- The foreign visit was at least partly for business purposes and, therefore, just because this visit resulted in, assuming it is correct, personal benefit to the director, the expenses incurred on the visit cannot be disallowed as personal expenses. This is at best expense of the assessee company which resulted in benefit to the director. In any event, there is no material whatsoever to come to the conclusion that 75% time on this trip was used for personal purposes of the director. The case relied upon by the CIT(A) was a case in which a detailed analysis of the activities of the director was carried out and then this conclusion was drawn. There is no such material on record in this case. Once the CIT(A) came to the conclusion that the trip was for some business purposes, it was not open to him to deny any part of deduction for these expenses- particularly when there is no material to hold that the visit was for personal purposes. In view of these discussions, as also bearing in mind entirety of the case, we uphold the grievance of the assessee and direct the Assessing Officer to delete the impugned disallowance - Decided in favour of assessee
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