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2018 (12) TMI 50 - AT - Income TaxDisallowance u/s 14A r.w.r 8D - Held that:- Decisions relied upon by Ld.Sr.DR has been passed prior to decision of Hon’ble Supreme Court in the case of Maxopp Investment vs CIT (2018 (3) TMI 805 - SUPREME COURT OF INDIA). Further Hon’ble Supreme Court in the case of Maxopp Investment vs CIT (supra), has rendered a clear finding in respect of banking institutions which is peculiar. Present assessee before us is also a Bank, where shares were held as stock-in-trade and therefore it becomes business activity of assessee. In our opinion specific observation Hon’ble Supreme Court in the case of Maxopp Investment vs CIT (supra), reproduced hereinabove are squarely applicable to facts of present case. We allow this ground raised by assessee and hold that these were not investments made by assessee in order to fall within the ambit of Rule 8D (iii) - Decided against revenue. Claim of leave encashment claimed - Held that:- Leave encashment is allowable on payment basis only. We therefore direct Ld.AO to allow claim of assessee in the year in which it has been paid and to disallow in the year of provision. We accordingly set aside Ground No. 3 back to Ld.AO with a direction to disallow the claim, in the year of provision and to allow claim in the year of payment. Ld. AO is directed not to levy any interest and penalty in the year of disallowance
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