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2019 (12) TMI 404 - AT - Income TaxDeduction u/s 80IA(4)(i)(c) in respect of civil works including irrigation Projects and 80IA(4)(iv)(b) in respect of Electrical Projects - HELD THAT:- Relying on the decision of Hon'ble ITAT vide [2012 (4) TMI 149 - ITAT HYDERABAD] assessee submitted that all these issues have to be remanded to the file of CIT(A) for passing an order in compliance with the said order of the Tribunal. Referring to above note, Ld.Counsel for the assessee submitted that the assessee is entitled to deduction u/s.80IA(4) in respect of both the types of the Projects. The said order of the Tribunal helps the assessee if an effect is given and the said decision is honoured by the AO. Further, referring to the allowability of deduction u/s.80IA(4)(i)(c) - assessee submitted that the ITAT already taken a view in this regard and consequently, the appeals of the Revenue are dismissed - we are of the opinion that the directions should be given to the CIT(A) to go by the said order of the Tribunal. AO shall grant an opportunity of being heard. Accordingly, Ground Nos. 1 to 4 are allowed for statistical purposes. Disallowance u/s.14A - HELD THAT:- There is no dispute about the earning of the dividend income of ₹ 4.5 Lakhs. It is also a fact that the finance charges were incurred by the assessee as seen from the Profit & Loss A/c. Considering the exempt nature of the dividend income, the onus of the assessee is to demonstrate that none of the finance charges were incurred for investments, which yielded the dividend income to the assessee in the year under consideration. The orders of the AO and CIT(A) are not clear about the extent of investments made by the assessee out of the interest bearing borrowed funds. It is also not emanating from the orders about the facts on the sufficiency of non-interest free funds for explaining the dividend yielding investments. Therefore, in all fairness, we are of the opinion that this issue should also be remanded to the file of AO for fresh consideration. Hence, this ground of assessee is treated as allowed for statistical purposes.
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