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2019 (3) TMI 799 - AT - Income TaxDisallowance u/s 14A - MAT u/s 115JB - Exclusion of yielded any exempt income investment - disallowance made under section 14A r/w rule 8D cannot be added to the book profit under section 115JB HELD THAT:- carefully considered the same and find that all the aspects of disallowance u/s 14A has exhaustively been considered by the co-ordinate bench in assessee’s own case [2018 (12) TMI 396 - ITAT MUMBAI]. Facts & circumstances being pari-materia the same, respectfully following the same, the grounds qua disallowance u/ 14A are disposed off Deduction under section 80IB(9) - activity of prospecting, exploration and production of mineral oil and natural gas undertaken by the assessee, whether satisfies the eligibility conditions of section 80IB(9) of the Act - each well by treating them as independent undertaking is allowable qua the provision of section 80IB(9) r/w the Explanation therein. - HELD THAT:- Therefore, facts being pari-materia the same, while admitting the new claim as raised by the assessee, the issue stand remitted back to the file of Ld. AO for adjudication on similar lines as in assessee’s own case [2018 (12) TMI 396 - ITAT MUMBAI]. Disallowance of obsolete store and spares - AO, treat the same as capital expenditure and did not constitute stock-in-trade - deduction u/s 42 could be allowed to the assessee for capital expenditure as and when the same are certified by the Auditors - HELD THAT:- The undisputed fact that emerges are that the assessee incorporates the assets, liabilities, income & expenditure arising from unincorporated joint venture operations based on the audited statement on line-to-line basis and to the extent of its participating interest in the unincorporated joint venture. The obsolete stock / spares have clearly been identified by the operator of the two blocks under question and the assessee has claimed the deduction of the same to the extent of its own share therein as computed in the manner. Undisputedly, these are old inventories as identified by the operator, which are found to be obsolete and no longer usable for the blocks. This being the case, both the authorities, in our opinion, fail to clinch the issue in the proper perspective. The said stock / spares could, by no stretch of imagination, be treated as capital expenditure for the assessee. Further, there is no double deduction as concluded by first appellate authority as evident from financial statements provided by the operator. Therefore, by deleting the same, we allow this ground of assessee’s appeal.
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