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2021 (7) TMI 322 - AT - Income TaxDisallowance u/s.14A - HELD THAT:- It is undisputed fact that during the year under consideration the assessee company has earned exempt income in the form of dividend only. However, the ld. CIT(A) has sustained the addition to the extent of ₹ 2,58,487/-. After considering the decision of Jivraj Tea Ltd. vs. DCIT [2014 (9) TMI 131 - ITAT AHMEDABAD] wherein it is held that disallowance u/s. 14A cannot be exceeded the exempt income we restrict the disallowance to the extent of the exempt income in the form of dividend earned by the assessee during the year under consideration to the amount . Accordingly, this ground of appeal of the revenue is dismissed. Computing book profit u/s. 115JB - HELD THAT:- No addition of disallowance made u/s. 14A can be made while computing book profit u/s. 115JB of the Act as held by Special Bench decision of Delhi ITAT in the case of ACIT vs. Vineet Investment Pvt. Ltd. [2017 (6) TMI 1124 - ITAT DELHI] The ld. counsel is fair enough not to controvert this undisputed fact that this issue is covered in favour of the assessee by the decision of Special Bench of the ITAT Delhi as referred above. Therefore, we do not find any merit in the appeal of the revenue, therefore, the same stands dismissed. Disallowance u/s. 40(a)(ia) on account of non-deduction of tax - HELD THAT:- After verifying that assessee has not filed supporting details and invoices of reimbursement of expenditure. In this regard, it is observed that ld. CIT(A) has not demonstrated the specific deficiencies in the details filed by the other parties in respect of payment made therefore, we restore this issue to the file of Assessing Officer for adjudicating afresh after verification of specific detail and the claim of payment of taxes by payee. Accordingly, the appeal of the revenue is dismissed and cross objection filed by the assessee is allowed for statistical purposes. Disallowance u/s. 36(i)(iii) - AO observed that assessee has given interest free loan to M/s. Lalbhai Realty Finance Ltd. an associated concern of the assessee company - CIT(A) has deleted the disallowance after verification of undisputed fact that assessee was having sufficient interest free funds to the amount in the form of share capital and reserves and surplus - HELD THAT:- The revenue had not disproved these undisputed fact that assessee was having sufficient interest free fund out of which the impugned loan was advanced to its sister concern. In the light of the above facts and findings, we do not find any infirmity in the decision of ld. CIT(A), therefore, the appeal of the revenue stands dismissed. Carry forward LTC loss as assessee had not filed revised return of income revising claim - HELD THAT:- In view of the direction of the ld. CIT(A) to the Assessing Officer to allow the claim of the assessee after verifying the revised working, we do not find any reason to interfere in the finding of ld. CIT(A). Therefore, this ground of appeal of revenue is dismissed. Addition u/s. 41(1) - HELD THAT:- Considering the fact that auditor has remarked in the Audit report in form NO. 3CD that the said liability was still existed subject to confirmation we restore this issue to the file of Assessing Officer to adjudicate afresh after giving opportunity to the assessee to make compliance as recommended in the Audit report. Therefore, this ground of appeal is allowed for statistical purposes. Non granting credit for TDS - HELD THAT:- As perused the material on record connected with the issue filed by the assessee during the course of assessment proceedings and appellate proceedings. Since this issue of granting credit for TDS has not been specifically adjudicated by the lower authority, therefore, we restore this issue to the file of the Assessing Officer for deciding afresh after verification of the supporting material after providing due opportunity to the assessee. Accordingly, this ground of the cross objection is allowed for statistical purposes. Computation of book profit u/s 115JB - CIT(A) has directed the Assessing Officer to verify the contention of the assessee that the provision was made in assessment year 2010-11 and same was added while computing book profit u/s. 115JB of the Act and the same was reversed in the year under consideration, if it is found correct, the Assessing Officer is directed to reduce book profit - HELD THAT:- After hearing both the sides and taking into consideration the detailed finding of the ld. CIT(A), we do not find any infirmity in the decision of ld. CIT(A) in directing the Assessing Officer to consider the claim of the assessee after verification of the facts available on the record. Accordingly, this ground of appeal of Revenue stands dismissed.
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