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2017 (12) TMI 307 - AT - Income TaxDisallowance u/s 14A - Held that:- It appears from the orders of the Departmental Authorities that the disallowance under section 14A r/w rule 8D has been made considering the fact that investments made by the assessee in the equity shares of companies would give rise to exempt income. Thus, prima–facie, assessee’s claim / contention that it has not earned any exempt income by way of dividend in the relevant previous year appears to be correct. That being the case, following the decision of the Hon'ble Delhi High Court in Cheminvest Ltd. v/s CIT [2015 (9) TMI 238 - DELHI HIGH COURT] and the consistent view of the different Benches of the Tribunal, we delete the addition made by the Assessing Officer and sustained by the learned Commissioner (Appeals). Disallowance of provision for leave encashment - Held that:- As could be seen, deduction claimed by the assessee was disallowed on the reasoning that the amount was not actually paid by the assessee in the relevant previous year. As per section 43B(f) of the Act, which was introduced to the statute by Finance Act, 2001 w.e.f. 1st April 2002, any sum payable by the assessee as an employer in lieu of any leave at the credit of his employee is allowable in the relevant previous year, wherein, such amount was actually paid. Keeping in view the aforesaid statutory provision, we direct the Assessing Officer to verify assessee’s claim and allow it in the assessment year, wherein, the assessee has actually paid the amount towards leave encashment. This ground is allowed for statistical purposes. Disallowance of deduction claimed for write–off of provisions for bad and doubtful debts - Held that:- Tribunal did not allow assessee’s claim as it was in the nature of provision. He submitted, in the impugned assessment year also, the assessee has not actually written–off the provision. He submitted, the Assessing Officer may be directed to allow assessee’s claim in the assessment year, wherein, the amount is actually written–off. In view of the aforesaid submissions of the assessee, we restore the issue to the file of the Assessing Officer to examine assessee’s claim and allow it in the year of actual write–off subject to fulfillment of other conditions of the Act. This ground is allowed for statistical purposes.
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