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2014 (3) TMI 1208 - AT - Income TaxDisallowance u/s 80JJAA - Additional wages to “new regular workmen employed by the assessee in the previous year” - new regular employees in respect of whom the claim was denied on the basis that they have not completed 300 days in the preceding year - CIT-A has held that the claim of deduction under sec.80JJAA in respect of regular workmen recruited in the earlier years and pertaining to relevant assessment year can be allowed only if the claim has been upheld in the assessment year in which the recruitment of such workmen was made - HELD THAT:- As rightly held by the Commissioner of Income tax (Appeals), the above dictum of statute cannot by any stretch of imagination be extended to new regular workmen employed in the preceding year. Accordingly, we agree with the finding of the Commissioner of Income-tax (Appeals) that the claim of the assessee for deduction under sec.80JJAA in respect of regular workmen employed in the earlier years relevant to the assessment year is not sustainable in law. As this is the main issue raised by the assessee, it is not necessary to deal with the arithmetics, of different assessment years. Accordingly, we uphold the orders of the lower authorities including enhancement of disallowance made by the Commissioner of Income tax (Appeals) for the assessment year 2006-07. Decided against assessee. Disallowance made under sec.14A read with Rule 8D - HELD THAT:- Sec.14A as well as Rule 8D do not apply for the assessment year 2006-07. Proportionate disallowance made by the Assessing Officer of the loan interest is not on any verifiable basis. It is a blunt disallowance. It cannot be upheld. Therefore, the said disallowance is deleted. This ground is decided in favour of the assessee.
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