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2018 (5) TMI 1592 - ITAT KOLKATAAddition u/s 14A r.w.r. 8D - Held that:- We delete the addition ₹ 1,71,253/- under Rule 8D (2) (ii) as there is no interest expenses debited in the profit and loss account. After setting off interest expense with interest income, the resulted amount of ₹ 52,54,469/- comes as a net interest income which can not be disallowed under Rule 8D (2) (ii) of the Income Tax Rules. Therefore, we note that there is no interest expenditure in the assessee’s case under consideration, interest received is more than the interest paid and the net result is interest income, therefore, no disallowance should be made under Rule 8D(2)(ii) of the I.T. Rules. For addition of ₹ 1,90,049/- under Rule 8D (2) (iii) of the Income Tax Rules, 1962, we direct the assessing officer to compute the disallowance @0.5% only taking into account the investments which yield dividend income, during the previous year, as per the discussion made in the case of REI Agro Ltd. (2013 (9) TMI 156 - ITAT KOLKATA). TDS credit disallowance on mobilization advance and not entire contract receipts were received in the relevant Assessment Year - Held that:- We direct the assessing officer to examine the income offered the tune of ₹ 6,00,000/- in the Assessment Year under consideration, and allow the TDS credit proportionately to the amount of ₹ 6,00,000/- and balance TDS credit on the remaining sum of ₹ 20,48,000/- (that is, ₹ 26,48,000 – ₹ 6,00,000) should be allowed in subsequent years in accordance with law. Hence, we allow this ground of the assessee for statistical purposes.
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