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2017 (3) TMI 524 - ITAT MUMBAIDisallowance, u/s 14A - Held that:- Identically, Hon'ble Gujarat High Court in CIT vs Corretech Energy (Pvt.) Ltd. (2014 (3) TMI 856 - GUJARAT HIGH COURT) held that, where the assessee did not make any claim for exemption of any income from payment of tax disallowance, u/s 14A could not be made. Section 14A cannot be invoked where the assessee has not received any dividend income during the relevant year. Thus we decide this issue in favour of the assessee as no exempt income was earned by the assessee during the relevant Assessment Year. - decided against revenue Disallowance of provision for warranty - Held that:- This issue is covered against the assessee by the decision of the Tribunal for Assessment Year 2005-06 [2013 (9) TMI 4 - ITAT MUMBAI ] as held for claiming the allowance one has to furnish a fair, scientific and reasonable basis to the AO - company has not scrutinised the ‘historical trend’ of warranty provisions made and compared it with the actual expenses incurred. Appellant has failed to prove that figures furnished by it are based on a ‘sensible estimate’ - appellant has not ‘maintained data systematically’.assessee has claimed that gross sales had increased over the years. It was further held that if estimate was made on a scientific basis, same could be allowed. In the matter before us, scientific data is not available.- decided against assessee Recomputation of disallowance u/s 14A of the Act r.w.r. 8D of the Rules after excluding the long term capital investment in subsidiary/group concerns - Held that:- We have considered the rival submissions and perused the material available on record. We find that while coming to a conclusion, the Ld. Commissioner of Income Tax (Appeal) has deliberated upon the factual matrix and various case laws including from Hon'ble jurisdictional High Court and the Tribunal. We find no infirmity in the same. So far as, the contention of the ld. DR that the order of the Tribunal is under challenge before the Hon'ble High Court, is concerned, we are of the view that order of the Hon'ble High Court will be binding upon both the parties but as on date the issue is in favour of the assessee, therefore, we dismiss the appeal of the Revenue.
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