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2020 (3) TMI 222 - AT - Income TaxDisallowance u/s.10AA(9) r.w.s.80IA(10) - HELD THAT:- The crux of the decision of the Tribunal [2016 (12) TMI 1673 - ITAT PUNE] held in favour of the assessee was that mere existence of the close connection and 'more than ordinary profits' are not enough to assume an arrangement as contemplated u/s. 80-IA(10) of the Act. The Assessing Officer is also required to prove any such arrangement existing which resulted in more than ordinary profits. The learned AO has not proved any arrangement between the parties in the facts of the case. Therefore, following the decision of the Pune Bench of the Tribunal in assessee’s own case (supra.), we are of the opinion that the order of the Ld. CIT(Appeals) is fair and reasonable as allowing the claim - Decided against revenue. Disallowance made u/s.14A r.w.r. 8D(2)(ii) & (iii) - HELD THAT:- As relying on GODREJ & BOYCE MANUFACTURING COMPANY LIMITED VERSUS DY. COMMISSIONER OF INCOME-TAX & ANR. [2017 (5) TMI 403 - SUPREME COURT] Assessing Officer ought to record his satisfaction to the effect that assessee’s claim of expenditure of lesser amount having regard to its account is incorrect. In this case, the Assessing Officer without discussing the issue has merely stated in the assessment Order that appropriate disallowance should be made u/s.14A of the Act and accordingly, disallowed the additional amount u/s 14A of the Act which was deleted by the Ld. CIT(Appeals) - No infirmity with the findings of the Ld. CIT(Appeals) and relief provided to the assessee by the Ld. CIT(Appeals) is hereby sustained - Decided against revenue Allowable deduction while computing the taxable income - education cess and secondary & higher education cess paid on the Income Tax and Surcharge - Claim raised for the first time before the Tribunal and they have not claimed this deduction in the return of income also - HELD THAT:- We find the ground raised by assessee in cross objection is legal in nature, hence, the same is admitted in line with the decision of Hon'ble Supreme court of India in the case of NTPC Ltd. Vs. CIT [1996 (12) TMI 7 - SUPREME COURT] We find this issue has already been adjudicated by the Pune Bench of the Tribunal in the case of DCIT Vs. Bajaj Allianz General Insurance Company Limited [2019 (8) TMI 370 - ITAT PUNE] wherein held education Cess, which is not disallowable item, on its payment, the cess is an allowable expenditure as per provision of section 40(a)(ii) - Decided in favour of assessee.
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