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2018 (4) TMI 253 - AT - Income TaxDisallowance u/s.35(2AB) - Held that:- Assessee would be entitled to deduction u/s.35(2AB) in the year under consideration, even thought the registration/recognition is accorded by the DSIR in the subsequent assessment year. See CIT Vs Sandan Vikas India Ltd [2011 (2) TMI 66 - DELHI HIGH COURT] - Decided against revenue Disallowance u/s 14A - Held that:- Interest paid by the assessee was subsequently and assessee was having sufficient interest free fund to cover up the investment earning exempt income. Therefore, we are of the considered opinion that provisions of Section 14A are not attracted. However, as decided by the ld. CIT(A) that salary paid to C.S. Christian, which works out to ₹ 40,713/- is upheld. Therefore, we upheld the decision of the ld. CIT(A) and we are not incline to interfere in the order passed by the ld.CIT(A). Thus, this ground of revenue is dismissed. Disallowance of sales promotion expenses - Held that:- Assessee had purchased gift items and gave as momentous to the customers of the clients; and expenditure incurred was insignificant as the turnover of the appellant is around ₹ 31 crores; majority of the payment were made through credit card and export turnover of the assessee had gone up from ₹ 10.8 crores in the previous year to ₹ 12.54 crores in the current year. Disallowance of Motor Car depreciation - Held that:- It is not disputed that funds for purchases of the car were provided by the assessee company which is also reflected in the accounts of the assessee company. In our opinion, when the car is actually used for the purpose of business of the company depreciation thereon cannot be denied. - Decided against revenue
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