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2018 (1) TMI 1287 - AT - Income TaxDisallowance u/s 14A r/w rule 8D - specific plea of the assessee is that the assessee has not earned any exempt income - Held that:- On careful reading of the assessment order as well as first appellate authority’s order, we are of the view that disallowance under section 14A r/w rule 8D has been made fundamentally on the basis that the assessee has made investment in shares of companies which would give rise to exempt income. There is nothing in the order of the Departmental Authorities to suggest that in the relevant previous year, the assessee had earned any exempt income. Therefore, prima–facie, the assessee’s claim that it has not earned any exempt income in the relevant previous year appears to be correct. - Decided in favour of assessee Addition made on account of alleged bogus purchase - addition relying upon the information obtained from the Sales Tax Department - Held that:- AO has not made any independent enquiry or investigation to find out the existence of the concerned parties or the genuineness of purchases. It is also a fact on record that the Assessing Officer has not doubted the sales effected by the assessee in the relevant previous year. Moreover, on identical facts and circumstances, addition made on account of bogus purchase in assessee’s own case for assessment year 2011–12 was reduced to 12.5% of the bogus purchase. Respectfully following the same, we direct AO to disallow 12.5% of the alleged bogus purchase Disallowance of deduction claimed on account of payment made towards employee’s contribution to PF/ESIC - Held that:- As could be seen from the facts on record, employee’s contribution to PF/ESIC were paid by the assessee much before the due date of filing of return of income as provided under section 139(1) of the Act. That being the case, as per ratio laid down by the Hon'ble Jurisdictional High Court in CIT v/s Hindustan Chemicals Organics Ltd.(2014 (7) TMI 477 - BOMBAY HIGH COURT), no disallowance can be made keeping in view the amendment brought to section 43B
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