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2019 (6) TMI 740 - AT - Income TaxDisallowance u/s 14A r.w. rule 8D(2)(iii) - AR argued that the assessee has not incurred any expenditure for earning dividend income - HELD THAT:- As rightly pointed out by the learned AR that the AO has considered the value of all investments as on 1/4/2008 and as on 31/3/2009 and calculated. In the Special Bench decision of Tribunal rendered in the case of Vireet Investments [2017 (6) TMI 1124 - ITAT DELHI] it has been held that where for the purpose of calculation of disallowance under rule 8D, only those investments which yielded exempt income have to be considered. Considering the above facts and circumstances, we restore this disputed issue to the file of the AO to recompute the disallowance where only dividend yielding investment has to be considered for the purpose of calculation of average value of investments under rule 8D(2)(iii). Accordingly, the ground of appeal of the assessee are allowed for statistical purposes. Disallowance of long-term retention bonus - AR contention that bonus paid to employees has to be allowed - HELD THAT:- AO has considered the provision of long-term retention bonus as an ascertained liability and it was not paid before due date of filing of Return of income u/s 139(1) and disallowed apparently u/s 43B which the learned AR concedes. The claim shall not be allowable for the assessment year 2009- 10. But if the assessee has paid in subsequent year, the claim has to be allowed on payment basis and ground of appeal is dismissed. Rent equalization provision - HELD THAT:- The assessee-company has claimed rent equalization provision as it was provided in the earlier year. But we find that these facts are not emerging from the order of the AO or from the order of the appellate authority. Therefore, we restore this disputed issue to the file of the AO to verify the material and evidence in respect of claim made in the earlier years and allow the deduction and this ground of appeal is allowed for statistical purposes. Deduction u/s 10A - AO has restricted the claim of expenses towards telecommunication expenditure, insurance incurred in foreign currency for providing technical services outside India, by allowing the deduction only from export turnover - HELD THAT:- As in the case of Tata Elxsi [2011 (8) TMI 782 - KARNATAKA HIGH COURT] held that for the purpose of computing exemption u/s 10A, when the export turnover in the numerator is to be arrived at after excluding communication expenses, the same should also be excluded in computing the export turnover as a component of total turnover in the donominator. We, relying on the decision above direct the AO to reduce the expenses incurred in foreign exchange from the export turnover as well as total turnover and allow the claim u/s 10A and the ground of appeal of the assessee is allowed.
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