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2019 (8) TMI 334 - HC - Income TaxDisallowance u/s 35D - HELD THAT:- Claim of the assessee as 1/5 related to expenses IPO F.Y. 2007-2008 and 2009-10, this deduction was allowed. We have also noticed that 1/5 expenses was allowed by the CIT(A) in assessment year 2008-2009 and 2009-10. Therefore, we justify the decision of learned CIT(A) to allow the claim of preliminary expenses to the amount of ₹ 20,11,387/- consisting of ₹ 11,11,226+9,00,161. After perusal of the above facts, we observed that claim of the assessee to the amount of ₹ 11,11,226/- was never disallowed in any of the earlier years and similarly for the assessment year 2008-09 abd 2010-11the learned CIT(A) had allowed the deduction of ₹ 900161/- in the light of the fact and findings reported int he decision of the learned CIT(A), we do not find any merit in the ground of appeal of the revenue therefore the same is dismissed. Disallowance u/s 36(1) - interest free funds given - assessee failed to prove that such funds were given for business purposes - HELD THAT:- During the course of assessment proceedings on perusal of the details of loan and advances the assessing officer noticed that assessee has shown ₹ 20 lacs as outstanding receivable from M/s Red Event India Pvt. Ltd. He observ4ed that during the assessment yea₹ 2008-09 and 2009-10 the assessing officer has given the findings that amount of advances to M/s Red Event Pvt. Ltd. was interest free advances and no purchases or services were obtained from the said party by the assessee. Accordingly the assessing officer has treated this amount advanced for non business purposes. Therefore, the assessing officer has charged interest @ 12% to the amount of ₹ 2,10,000/- on the said advances and added the same to the total income of the assessee Disallowance u/s 14A read with rule 8D - whether no exempt income is earned - HELD THAT:- Question proposed by the Revenue, is squarely covered by a decision of this Court in GREENLAND INFRACON P. LTD. [2019 (7) TMI 614 - GUJARAT HIGH COURT].
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