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2023 (4) TMI 985 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - contention of the assessee that interest free funds available with the assessee in the form of Share Capital and free Reserves are much in excess then the investments and therefore no disallowance of interest expenditure under Rule 8D(2)(ii) - HELD THAT:- Since the issue raised in the present ground as admitted by Learned AR is identical to that of A.Y. 2014-15, we following the same reasoning of the Co-ordinate Bench while deciding the issue for A.Y. 2014-15 and similar reasons restore the issue back to the file of AO and direct him to rework that disallowance u/s 14A r.w.r 8D in accordance with law and the decisions of Hon’ble Jurisdictional High Court. AO shall be free to call for such information and explanations as he deems fit to adjudicate the claim of the assessee. Assessee shall also be free to file such documents, explanations, submissions as it deems fit in respect of the claim. Needless to state that AO shall grant adequate opportunity of hearing to the assessee. Disallowance of loss - whether the loss was a business loss or a capital loss and if it is a capital loss whether the loss can be allowed as a business expenditure? - HELD THAT:- The loss in the present case is on account of depreciation in the value of investments. It is not the case of assessee that the loss is a business loss. In such a situation, when the loss is not a business loss, we do not find any infirmity in the order of CIT(A) and thus this ground of assessee is dismissed. Deduction u/s 10AA - AO after making the adjustment on account of allocation of office expenses and interest and other adjustment recomputed the exemption u/s 10AA - HELD THAT:- We find that identical issue arose in assessee’s own case in A.Y. 2014-15 [2020 (9) TMI 403 - ITAT DELHI] and Co-ordinate Bench of Tribunal on this issue restored the issue back to the file of AO - We therefore following the order of Co-ordinate Bench for A.Y. 2014-15 and with similar directions restore the issue back to the file of AO and direct him to re-compute the exemption under 10AA of the Act in accordance with law. Assessee shall be free to file such documents, explanations, submissions as it deems fit in respect of the claim and AO shall also be free to call for such information and explanations as he deems fit to adjudicate the claim of the assessee.
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