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2022 (10) TMI 609 - AT - Income TaxDisallowance of the claim for deduction u/s 80IA - Operating and maintaining CFS facility - HELD THAT:- Issue is squarely covered by the Hon’ble Supreme Court decision in assessee’s own case [2018 (5) TMI 359 - SUPREME COURT] wherein the assessee has been allowed to claim deduction under Section 80IA as the assessee is developing, operating and maintaining infrastructure facilities in the port area and is Container Freight Station which comes within the definition of port as per subsequent clarification issued by the JNPT on 24.10.2007. Thus, the Ground No. 1 & 2 of Revenue’s appeal are dismissed. Disallowance u/s 14A - assessee has made suo moto disallowance on the dividend income - AO has made the disallowance on expenditure at 0.5% with the specific disallowance that total interest expenditure incurred by the assessee And assessee has not disallowed interest and expenses as provided under Rule 8D as prescribed under Section 14A - HELD THAT:- There was a clear satisfaction that assessee has not made any disallowance on expenditure. Thus, the CIT(A) was not correct in holding that no satisfaction was recorded by the AO. But the contention of the assessee that the AO should have taken only those shares of Mutual Fund and equity shares which resulted in earning tax from dividend income appears to be just and proper and the working of disallowance under Rule 8D(2)(iii) determined by AO should be restricted to Rs. 2,30,935/- as the assessee has earned exempt income of Rs. 6,52,761/-. Thus, we direct the AO to restrict the disallowance as per Rule 8D(2)(iii) to the extent of Rs. 2,30,935/-. Ground Nos. 3 & 4 of Revenue’s appeal are partly allowed. Education cess & SHEC under Section 40 of the Income Tax Act is squarely covered by the decision of Hon’ble Bombay High Court in case of Sesa Goa Ltd. [2020 (3) TMI 347 - BOMBAY HIGH COURT] Deduction under Section 80IA on the rental income - HELD THAT:- It is the requirement of the business that the separate block for user agencies quipped with basic facilities and for accommodation for bank are mandatory for the assessee as per the Ministry of Commerce guidelines. Thus, claiming deduction under Section 80IA on the rental income is just and proper. There is no need to interfere with the finding of the CIT(A) Ground No. 6 is dismissed.
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