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2017 (3) TMI 805 - AT - Income TaxAllowable business expenditure - temporary lull in the business - Held that:- Since the assessee was harping on the point of temporary lull in the business and claiming the said expenses as business expenses even before the Ld. CIT(A), there was no occasion for him to make out his case on this point. He has urged that one more opportunity may, therefore, be given to the assessee to put forth his case by sending the matter back to the Assessing Officer. I find merit in this argument of the Ld. Counsel for the assessee and since the Ld. DR, has not raised any objection in this regard, I set aside this issue to the file of the AO for the limited purpose of giving the assessee an opportunity to support and substantiate its case for deduction of the impugned expenses u/s 57 (iii). FBT expenses assessed - allowance of expenses - Held that:- Expenses cannot be allowed as deduction merely on the basis that FBT has been paid by the assessee on the said expenses especially when there is no income earned by the assessee under the head “income from business”. The entire income having been offered by the assessee company itself, under the head “income from other sources”, only those expenses which are laid out or expended wholly or exclusively, for the purpose of making or earning of such income are liable to be allowed u/s 57(iii) and not otherwise merely on the basis of payment of FBT Addition u/s 14A r.w. Rule 8D - as per assessee disallowance as worked under Rule 8D, is after taking into consideration the entire investment made by the assessee in shares instead of only that investment which has given rise to the exempt dividend income - Held that:- Since this contention of the Ld. Counsel for the assessee is duly supported by the decision of the co-ordinate bench of this Tribunal in REI Agro Ltd. Vs. DCIT Central Circle-XXVII (2013 (9) TMI 156 - ITAT KOLKATA ), restore this issued to the file of the Assessing Officer, for the limited purpose of re-computing the disallowance u/s 14A by applying Rule 8D by excluding the investment on which no exempt income was actually received by the assessee during the year under consideration.
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