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2017 (2) TMI 649 - HC - Income TaxDisallowance on account of proportionate interest and administrative expenses - Held that:- The assessee was already having enough fund for investment in tax free security and therefore, the learned CIT(A) directed to delete disallowance made on account of proportionate interest. The same has been confirmed by the learned tribunal. It is required to be noted that similar disallowance in the case of the very assessee for the A.Y. 2004-05 and the same has attained finality. The aforesaid has also been considered by the learned tribunal while passing the impugned judgement and order. So far as the disallowance of administrative expenses assessee itself voluntarily offered ₹ 6 Lacs towards administrative expenses before the A.O. The learned CIT(A) has restricted administrative expenses with respect to the balance of ₹ 4,54,333/-. The aforesaid has been confirmed by the learned tribunal. The relevant discussion has been made by the learned tribunal in para 21 to 27. We are in complete agreement with the reasons and the view taken by the learned tribunal. Under the circumstances, we see no reason to interfere with the impugned judgement and order passed by the learned tribunal so far as question No. [A] is concerned. - Decided against revenue. Addition on account of unutilized modvat/cenvat credit - Held that:- Tribunal has taken note that with respect to modvat receivable account, there is corresponding less debit to the purchase account and hence to that extent there is already income offered for tax. If that be so, there was no question of further adding modvat/cenvat credit to the income of the assessee for the year under consideration. Under the circumstances, we see no reason to interfere with the impugned judgement and order passed by the learned tribunal confirming the order passed by the learned CIT(A) deleting the addition made by the A.O. on account of unutilised modvat/cenvat credit - Decided against revenue. Addition on account of project loss in relation to amount receivable from Mahanagar Gas Ltd. - Held that:- The said issue is squarely covered against the revenue in view of the decision of the Hon'ble Supreme Court in the case of T.R.F. Ltd. Versus Commissioner of Income Tax, reported in (2010 (2) TMI 211 - SUPREME COURT) wherein observed that with respect to bad debt claim, the assessee is required to establish only that the debt was written off and it is not necessary for the assessee to establish that the debt, in fact, had become non-recoverable. Under the circumstances, even the present appeal qua question No.[C] also deserves to be dismissed.- Decided against revenue.
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