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2019 (7) TMI 922 - AT - Income TaxDisallowance of provision for post-retirement medical expenses - actuarial basis - HELD THAT:- As decided in RURAL ELECTRIFICATION CORPN LTD. [2018 (3) TMI 1572 - ITAT DELHI] where the provision has been created on the basis of actuarial calculation on a scientific basis the liability is not contingent but definite. We do not find any infirmity in the order of the Id CIT(A) in deleting the above disallowance. Disallowance of Management fee and trusteeship fees u/s 14A - not claimed in computation - HELD THAT:- Since the CIT(A) has given his decision based on factual finding that said expenses have not been claimed in the profit and loss account, and said finding has not been disputed by the learned DR, though in the ground it is submitted that disallowance has been deleted without affording an opportunity to the AO. However, we find that before us no material has been brought on record to dispute this factual finding that those expenses were not claimed in the profit and loss account. In view of the above, we do not find any error in the order of the Ld. CIT(A) and accordingly we uphold the same . Disallowance under rule 8D(2)(ii) and 8D(2)(iii) - HELD THAT:- Investment out of interest-free funds available exist in the year under consideration, thus respectfully following the finding of the Tribunal, the disallowance for indirect interest expenses under rule 8D(2)(ii) amounting to ₹ 14,64,536/- is deleted. On the issue of 0.5% of average investment, the Tribunal [2018 (3) TMI 1572 - ITAT DELHI] has upheld the disallowance under rule 8D(2)(iii), thus respectfully, following the finding, the disallowance in the year under consideration of ₹ 6,24,445/- is sustained. Addition interest accrued on the Special Reserve Fund created and maintained by various cooperative electrical societies - HELD THAT:- As decided in assessee's own case CIT(A) has deleted the addition with respect to those societies whose confirmation of offering the interest income in the hands of those societies was finished by those societies. In absence of those certificates the additions were confirmed. DR could not point out any infirmity in the order of Id CIT(A). We are also of the considered view when the income has been offered by those societies in their own hand it cannot be taxed in the hands of the assessee. In the result, we do not find any merit in the appeal of the revenue Addition treating the interest income earned by the Cooperative Electric Society, Siricila on the special reserve fund as income of the assessee - HELD THAT:- As decided in RURAL ELECTRIFICATION CORPN LTD. [2018 (3) TMI 1572 - ITAT DELHI] Tribunal not only on the principle of the judicial discipline, but also relied on the finding of the coordinate bench that rules and other criteria related to creation of the special reserve fund and its control established that interest accrued in the hands of the assessee. Thus, respectfully following the above decision, the ground No. 3 of the appeal of the assessee is dismissed. Computation of the deduction under section 36(1)(viii) and 36(1)(viia)(c) - HELD THAT:- CIT(A) has only given direction to verify that additions to the income are in the nature of the income from long-term finance and then allow the benefit accordingly. Since the CIT(A) has directed to verify the quantum of deduction available on “long-term finance” in accordance with law, we do not find any error in the order of the CIT(A) on the issue in dispute, and we, accordingly, uphold the same. The ground of the appeal of the Revenue is accordingly dismissed.
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