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2017 (6) TMI 249 - AT - Income TaxAddition made on account of capitalization of amount in respect of contract awarded - Held that:- We find that the amalgamation of the JSW(E)Ratnagiri took place on 01.04.2010, that before that date Ratnagiri Unit was an independent entity, that the alleged bogus bills were obtained by JSW(E)Ratnagiri.If any addition in that regard had to be made it could be made in the hands of Ratnagiri Unit or successor to that unit. The FAA has deleted the addition as the bills were not taken by the assessee in the year under consideration. In our opinion the order of the FAA does not suffer from any legal or factual infirmity.Therefore, confirming the same the Ground is decided against the AO. Disallowance u/s. 14A r.w. Rule 8D - Held that:- AO had not given any justification for enhancing the disallowance to ₹ 44 crores (approx.),that the FAA had restricted the disallowance to ₹ 9.14 crores only, that the assessee itself had offered the disallowance in the return filed in response to notice u/s. 153A of the Act. Considering the above, we are of the opinion that there is no need to disturb the order of the FAA. Deduction u/s. 80IA in respect of the total disallowance u/s.14A - Held that:- Issue was adjudicated in favour of the assessee by the Tribunal while deciding the appeal for AY 2008- 09 wherein held whatever income was enhanced on account of disallowance computed u/s 14A of the Act, it has been offset by the exemption available on such enhanced profit in terms of section 80IA of the Act. Thus, on facts it is quite clear that the disallowance u/s 14A of the Act does not impact the net taxable profits as assessee becomes eligible to higher exemption u/s 80IA of the Act Treatment given to sale proceeds of CER and reduction of a sum on account of de-merger of investment division while computing the book profit - Held that:- While deciding the appeal for the AY.2008-09 Tribunal had dealt with the issue restoring back the issue to the file of the AO for fresh adjudication
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