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2015 (8) TMI 84 - AT - Income TaxDisallowance made on account of claim of deduction u/s 10A for unit no. II and unit no. III - Held that:- The necessary documents were examined by the ld. AO as well as by the ld. DRP and found that the assessee sought for approval of expansion of old unit no.I and never sought approval to set up of a new units and further STPI granted approval for expansion of unit no.I. Before the AO/DRP, the assessee placed reliance upon the decision of Patni Computers Ltd., which was upheld by Hon'ble jurisdictional High Court [2013 (10) TMI 293 - BOMBAY HIGH COURT]. However, we find that the Hon'ble High Court decide the issue with respect to section 10A on the ground that the Tribunal recorded a finding that the new units, set up by the assessee, had fulfilled all the condition prescribed u/s 10A(2) of the Act. Assessee has not demonstrated before us that the finding recorded by the ld. DRP is perverse or contrary to facts. However, to safeguard the interest of both sides, we remand this issue to the file of AO to examine the claim of the assessee and after providing due opportunity of being heard will decide in accordance with law. - Decided in favour of assessee for statistical purposes. Reallocation of head office expenses - Held that:- The crux of argument advanced on behalf of the assessee is that certain common expenses, amongst all the units, may be made on reasonable basis. On the other hand, the ld. DR, Shri Srivastava, defended the conclusion arrived at in the impugned order. Since, this ground is interconnected with the above ground, therefore, this ground is also remanded back to the file of the ld. Assessing Officer, consequently, The ld. Assessing Officer is directed to look into the allocation part/the claimed expenses and after examination, decide afresh - Decided in favour of assessee for statistical purposes. Disallowance made u/s 14A - Held that:- Without going into much deliberation, we direct the ld. Assessing Officer to decide the case of the assessee in the light of the decision from Hon'ble jurisdictional High Court pronouncing in Godrej & Boyce Mfg. Co. Ltd. vs DCIT [2010 (8) TMI 77 - BOMBAY HIGH COURT ] and also by duly considering the decision of Hon'ble Supreme Court in the case of Rajendra Prasad Moody (1978 (10) TMI 133 - SUPREME Court ) - Decided in favour of assessee for statistical purposes. Disallowance of club expenses - Held that:- The assessee paid the membership fee of the club by way of admission fee/corporate membership fee wholly and exclusively in the interest of the business, thus, it has to be allowed as business expenditure. Identical ratio was laid down in CIT vs Samtel Color Ltd. (2009 (1) TMI 26 - DELHI HIGH COURT) . The assessee is directed to ensure that such benefit is only available to the Director/Senior Executive of the assessee company and not to each and every employee of the assessee company. - Decided in favour of assessee Adjustment on account of interest received on loans given to AE - TPO adjustment - Held that:- As decided in assessee's own case [2013 (6) TMI 420 - ITAT MUMBAI ] LIBOR rate has to be adopted in the instant case, since the interest charged by the assessee from its AE is higher than the LIBOR rate, no transfer pricing adjustment in that regard is warranted, therefore, this ground of the assessee is allowed. - Decided in favour of assessee
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