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2019 (11) TMI 864 - AT - Income TaxTP Adjustment - admit the additional evidence - HELD THAT:- Following the decision of the Tribunal in assessee’s own case for the immediately preceding two assessment years, we admit the additional evidence filed by the assessee in the form of affidavit and restore the issue to the file of the A.O./TPO to determine the ALP of the commission paid by the assessee, after considering the affidavit of Mr. Ernst Huber, Director, Taratec SA, Switzerland and in the light of the decision of the Tribunal in assessee’s own case in the immediately two preceding assessment years. The appeals filed by the Revenue for all the three years are accordingly allowed for statistical purposes. Disallowance u/s 14A r.w. Rule 8D - HELD THAT:- In view of the decision of the Hon'ble Delhi High Court in the case of Holcim India Ltd. [2014 (9) TMI 434 - DELHI HIGH COURT] where it has been held that no disallowance u/s 14A r.w. Rule 8D can be made when the assessee has not received any exempt income during the year, we uphold the order of the CIT(A) and the ground raised by the Revenue is dismissed. Disallowance u/s 14A r.w. Rule 8D - HELD THAT:- There is no satisfaction of the Assessing Officer in the instant case. He had categorically asked the assessee and the assessee has computed such disallowance as per the provisions of section 14A r.w. Rule 8D of the Act. We, therefore, do not find any infirmity in the order of the Assessing Officer in making a disallowance of ₹ 5,50,945/-. The ld.CIT(A) has rightly disallowed the same. We, therefore, uphold the action of the CIT(A) in sustaining the addition of ₹ 5,50,945/-. So far as assessment year 2009-10 is concerned, it is seen from the computation statement filed at page 96 of the paper book that the actual dividend received by the assessee during the year is ₹ 4,21,566/- only. It has been held in various decisions that the disallowance u/s 14A r.w. Rule 8D cannot exceed the actual exempt income received. We, therefore, modify the order of the CIT(A) and direct the Assessing Officer to restrict the disallowance u/s 14A r.w. Rule 8D to the actual dividend income received during the year. The ground raised by the assessee for the A.Y. 2008-09 is accordingly dismissed and the ground raised for the A.Y. 2009-10 is partly allowed. Disallowance on account of club membership and club service charges - AO disallowed on the ground that the assessee did not file any reply on this issue - CIT(A) upheld the action of the Assessing Officer on the ground that the assessee, during the assessment proceedings as well as the appeal proceedings has not filed any evidence in support of the claim of expenses - HELD THAT:- Considering the totality of the facts and in the interest of justice, we deem it proper to restore the issue to the file of the Assessing Officer with a direction to give one final opportunity to the assessee to substantiate the claim of expenses on account of club membership and club service charges. This ground raised by the assessee for assessment year 2009-10 is accordingly allowed.
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