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2022 (3) TMI 1240 - AT - Income TaxIncome deemed to accrue or arise in India - dividend income from Joint venture with investment in the P.E. Oman - as per AO assessee has not paid tax either in the source country or in India - HELD THAT:- Issue of dividend income from investment in the P.E. in Oman is concerned the same being included in the taxable income and thereafter rebate of tax has been allowed to the assessee by means of tax credit u/s 90(2) read with Article 25(2) and (4) of the Indo Oman DTAA, the dividend earned can be said to be exempt from tax and but the provisions of section 14A would not be attracted. This consistent view has been taken by the predecessor of Ld. F.A.A. for the assessment year 2008-09 and 2009-10 and also upheld in assessee’s own case [2018 (5) TMI 1035 - ITAT DELHI] and [2018 (5) TMI 1021 - ITAT DELHI] No Reason is cited by revenue to distinguish the same. Thus, in regard to ground no. 1 and 2, the appeal of revenue has no substance to interfere in the Ld FAA order. Allowability of Horticulture expenses u/s 37(1) - Addition of 10% of horticulture expenses as element of personal use - CIT-A deleted the addition - HELD THAT:- Tribunal is of considered opinion that assessee is not a private entity but a Multi State Cooperative Society registered under Multi State Co-operative Society’s Act, 2002 and thereby bound by statutory provisions with regard to utilization of funds so there cannot be any presumption of use of the funds for any private use. Ld FAA rightly observed that Ld. AO while making the disallowance has failed to bring on record any specific finding that element of personal nature is involved in these expenses Assessee is engaged in the manufacturing of chemical fertilizers and certainly the premises of the assessee require maintenance of extensive green channels and green belts for balancing environmental hazards which are quite probable, due to the nature of activities of the assessee company. The ld. F.A.A has taken into consideration the requirements laid by Central Pollution Control board and Environment Protection Laws to justify the expenses. There is no prudence in expecting the assessee to maintain log book for employee wise / premise wise expenditure, as expenditure was for maintenance of the green belts in the township and manufacturing units and not on identifiable individuals. Thus, in regard to grounds no. 3 & 4 also there is no substance to interfere in the Ld. FAA order. - Decided against reveue.
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