Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (4) TMI 1183 - ITAT AHMEDABADDisallowance u/s 14A - Held that:- We find that assessee has not given details as to when shares were acquired and what was the source of financing cost of acquisition of shares in the earlier year and in the current year. We observed that It is also not disputed that the assessee has earned exempt income because of which the expenditure related to earning of such income would be disallowable in terms of the provisions of sec. 14A of the act. After considering the totality of the facts of the case about availability of sufficient own funds, we exclude interest components of ₹ 88,991/- out of the total disallowance of ₹ 3,19,784/- and restrict the disallowance to ₹ 2,30,793/-. Therefore, this ground of the assessee is partly allowed. Not allowing deduction u/s. 80IA - assessee generating power for captive consumption - Held that:- This issue in question was covered in favour of the assessee in the case of Alembic Ltd [2016 (7) TMI 1239 - GUJARAT HIGH COURT] wherein allowed the claim of the assessee even in respect of electricity generation plant established by the assessee and the income derived from such enterprise of the assessee, it would have to be held that the assessee fully complied with the requirements prescribed under section 80-IA in order to avail the benefits provided therein. Therefore, the contention based on the interpretation of the expression `derived from’ could have no application to the case where the provisions of section 80-IA got attracted. - Decided in favour of assessee . Disallowance of deduction u/s. 35(2AB) - expenditure on scientific research on in-house research and development facilities - AO rejected the claim of deduction for the period prior to 01-04-2008 to 31-03-2010 on the ground that in the Form No. 3CM dated 22/10/2008 giving approval u/s. 35(2AB) it was specifically mentioned that the Research and Development facilities was approved for the purpose of section 35(2AB) with effect from 01- 04-2008 to 31-03-2010 - Held that:- We have perused the paper book furnished by the assessee and find that the assessee claim that application for approval of in-house research and development was made on 22-12-2006. In order to verify the same we have gone through the pages of paper book and find that as per para 43 of page no. 235 It was stated that application to the prescribed authority was made on 26-06-2008. We have further verified from page no. 162 in the paper book that a letter dated 24-10-2008 was addressed to the assessee from the Ministry of Science and Technology Department of Scientific and Industrial Research Training providing reference of the application of the assessee dated 26.06.2008. The claim of the assessee that it had applied on Dec 22, 2006 could not be substantiated in view of supporting material indicating that assessee had applied on 26/06/2008. We observed that above findings throw lights on the contentions that the facts of the case of the assessee are distinguished from the decision of the case of Claris Life Sciences Ltd.[2008 (8) TMI 579 - Gujarat High Court]. we considered it will be more appropriate to restore the issue of applicability of the decision in the case of the Claris Life Sciences Ltd to the file of the assessing officer to decide a fresh
|