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2017 (2) TMI 215 - AT - Income TaxReduction of the amount of service tax while computing rent received - Held that:- The assessee filed the statement of service tax and challans of service tax paid. The statement of service tax and the challans of service tax paid nowhere discussed by the Assessing Officer as well as CIT(A) specifically in the circumstances when the assessee has undertook before us that the said documents were placed before the CIT(A). Any how the said statement of service tax and challans of service tax paid requires verification on the part of the Assessing Officer, hence we set aside the finding of the CIT(A) on this issue and restore the file to the Assessing Officer to verify the claim of the assessee in view of the above said documents by giving an opportunity of being heard to the assessee in accordance with law. Accordingly, this issue is decided in favour of the assessee against the revenue. Disallowance of advertisement expenses, legal and professional fees and miscellaneous expenses - Held that:- The assessee has produced the details of the expenditure before the CIT(A) in view of the certificate dated 04.10.2016. Accordingly, the advertisement expenses has been shown at page 7 and 15 of the paper book which nowhere discussed in the said order. The expenses are in connection with the audit fees, advertisement fees and miscellaneous fees paid for the filing of appeal before the ITAT. The claim of the assessee nowhere examined and discussed by the CIT(A) in his order. No doubt the expenses has been incurred to maintain the establishment, therefore, the same is liable to allowable in view of the law settled in Rampur Timber and Turney Co. Ltd. (1981 (2) TMI 75 - ALLAHABAD High Court) and Ganga Properties Ltd. (1989 (5) TMI 10 - CALCUTTA High Court) and Chinai & Co. Pvt. Ltd. (1990 (8) TMI 7 - BOMBAY High Court ). Since the material produced before the CIT(A) has not been discussed or examined, therefore in the similar circumstances this issue is required to be examined at the end of the Assessing Officer in accordance with law. Accordingly, this issue is decided in favour of the assessee against the revenue. Disallowance u/s.14A - Held that:- A perusal of Balance sheet furnished by the assessee would show that the assessee has held shares in a company named Money Matter Advisory Ltd and units in two schemes of LIC Mutual Fund as its opening balance of investment. During the year under consideration the assessee has purchased shares of Pipavav Shipyard Ltd. and sold part of units held in LIC Mutual Fund. As stated earlier the assessee had received dividend income of ₹ 7,74,483/- during the year. Except these transactions, the assessee has not done anything in respect of investments held by it. Thus the disallowance of ₹ 60,000/- made by the assessee in its return of income appears to be reasonable in terms of section 14A of the Act. Accordingly, we set aside the order passed by the learned CIT(A) on this issue and direct the Assessing Officer to restrict the addition u/s.14A of the Act of ₹ 60,000/- made by the assessee. The same amount is required to be added to the book profit computed u/s.115JB of the Act, since the decision rendered by Hon’ble Delhi Bench of Tribunal in the case of Goetze (India) Ltd. Vs. CIT [2009 (5) TMI 615 - ITAT DELHI ] has been reversed by the Hon’ble Delhi High Court, the same case reported in [2013 (12) TMI 607 - DELHI HIGH COURT ].
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