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2020 (11) TMI 815 - AT - Income TaxAddition under the head Railways Punitive charges - Whether compensatory in nature and allowable u/s 37 - observation of the A.O that punitive charges for overloading was penal in nature - HELD THAT:- Since the identical issue has been decided by the Coordinate bench in favour of the assessee by allowing the claim of damages in own case [2018 (10) TMI 672 - ITAT KOLKATA], respectfully relying upon the same we find no infirmity in the order passed by the Ld CIT(A) so as to warrant interference. Hence in the absence of any merit found in the appeal preferred by the revenue, the same is hereby dismissed. Addition u/s 14A r.w.r 8D - HELD THAT:- As in own case [2018 (10) TMI 672 - ITAT KOLKATA] not all investments become the subject-matter of consideration when computing disallowance under section 14A read with rule 8D. The disallowance under section 14A read with rule 8D is to be in relation to the income which does not form part of the total income and this can be done only by taking into consideration the investment which has given rise to this income which does not form part of the total income. Under the circumstances, the computation of the disallowance under section 14A read with rule 8D(2)(iii), which is issue in the assessee's appeal, is restored to the file of the AO for recomputation in line with the direction given above. No disallowance under section 14A read with rule 8D(2)(i) and (ii) can be made in this case. Hon’ble Jurisdictional High Court in CIT vs. M/s Ashika Global Securities Ltd [2018 (7) TMI 1425 - CALCUTTA HIGH COURT] and also the judgement passed by the Coordinate Bench and respectfully relying upon the same we find no infirmity in the order passed by the Ld CIT(A) in deleting the addition made under section 14A r.w.r.8D so as to warrant interference. Appeal of the Revenue is dismissed.
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