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2021 (10) TMI 22 - AT - Income TaxDisallowance u/s 14A r.w.r.8D - HELD THAT:- On careful consideration of the rival contentions we find that as there is no exempt income earned by the assessee there cannot be any disallowance u/s 14A - Decided in favour of assessee. Suo Moto disallowance u/s 14A - HELD THAT:- As the assessee has offered suo moto disallowance of ₹ 2 lakhs, failed to give any breakup of such expenditure, itself said that it has not incurred any expenditure in relation to exempt income, we do not find any infirmity in the order of the learned CIT – A in retention of disallowance of ₹ 2 lakhs. Thus, ground numbers 2 – 4 of the appeal of the assessee are also dismissed. Disallowance of corporate social responsibility claimed as a business expenditure eligible u/s 37 (1) - deduction u/s 80 G of the act of the above expenditure - HELD THAT:- We find that assessee has given donation to three organizations. Assessee has failed to establish that how these expenditure has been incurred by the assessee wholly and exclusively for the purposes of the business. Therefore, we do not find any infirmity in the order of the lower authorities in denying the deduction of the above expenditure u/s 37 (1) - as assessee has obtained donation receipt from all these three organization, which are registered u/s 80G of the income tax act, we direct the learned assessing officer to grant the deduction of the above donation under the above Section. Accordingly, ground number six of the appeal of the assessee is allowed. Disallowance on account of sales tax liability additionally imposed by the sense tax department Mumbai for the period 1/4/1971 – 31/3/1992 - HELD THAT:- Merely because the assessee has been granted a refund arising out of the above appellate order on 19th of March 2009 of ₹ 223,019 it cannot be said that liability for payment of the sum of ₹ 720,081 arose in assessment year 2010 – 11. Therefore, the claim of the assessee is undoubtedly allowable for assessment year 2009-10 and correctly disallowable for assessment year 2010 – 11. Therefore, we confirm the disallowance made by the assessing officer for assessment year 2010 – 11 in case of the assessee. Thus we do not find any infirmity in the order of the learned CIT – A. Allowability of the above claim of the assessee in assessment year 2009-10, AR has referred to the special bench decision of joint Commissioner of income tax versus Mukand Ltd [2007 (2) TMI 358 - ITAT MUMBAI] as well as the decision of the coordinate bench in case of Perfect equipments [2001 (11) TMI 214 - ITAT AHMEDABAD-A] it has been held that the provisions of Section 153 (3) gives the power to the appellate authority lifting the bar of the time limitation for giving effect to the finding or direction contained in the order of the tribunal regarding bringing to tax the escaped income as well as the claim allowable in different year, we, respectfully following the above judicial precedents, direct the learned assessing officer to grant the above deduction in assessment year 2009 – 10. Appeal of the assessee is dismissed subject to allowing the above claim in assessment year 2009 – 10. Disallowance paid towards statutory taxes - HELD THAT:- CIT - A considered the claim of the assessee in paragraph number 30.4 by considering the claim of the assessee for deduction of ₹ 125,100 allowing the balance claim but retaining the addition at ₹ 83,755/– the assessee is aggrieved with that. The above amount comprises of two different sums (1) payment of ₹ 67,725 was relating to assessment year 2007 – 08, (2) a sum of ₹ 16,030 sales tax demands for assessment year 2003 – 04. We find that assessee has paid both the sums during the year and claimed as deduction. As the assessee has paid the above sum during the year and there is no finding that such sum were incurred in another year but paid during the year, we direct the learned assessing officer to delete the above disallowance and allow the claim of the assessee.
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