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2019 (11) TMI 853 - AT - Income TaxAddition u/s 14A - interest disallowance under Rule 8D(2)(ii) - HELD THAT:- We find that the issue is squarely covered in favour of the assessee by the decision of the Tribunal cited supra in assessee’s own case for AYs 2008-09 to 2011-12. The Tribunal, by following the decisions of the Tribunal in the cases of Premier Finance & Leasing Co. Ltd [2016 (5) TMI 1218 - ITAT MUMBAI] and Aditya Birla Nuvo Ltd [2014 (10) TMI 154 - ITAT MUMBAI] decided the issue in favour of the assessee. Working of suo moto disallowance - HELD THAT:- We find from records that the ITAT, for AYs 2008-09 to 2011-12, after considering a plethora of judgements, has directed the assessing officer to make disallowance u/r 8D(2)(iii) @0.5% of the average value of investments after excluding strategic investments. Considering the decision of Special Bench of Delhi Tribunal in Vireet Investment (P) Ltd [2017 (6) TMI 1124 - ITAT DELHI] we direct the assessing officer to disallow 0.5% of the average value of investments excluding strategic investments for the making of Rule 8D(2)(iii) of I.T. Rules. As such, ground 2 of the assessee succeeds in part Disallowance of Broken period expenses - HELD THAT:- The closing balance has been shown in the balance sheet. The interest income on Government securities and the profit/ loss has been offered in the return of income for the current year. Similar treatment is consistently offered by the assessee in earlier years. The assessee also relied on the CBDT Circular No. 18/2015 dated 02.11.2015. The ld CIT(A) accepted the contention of the assessee granted relief to the assessee by relying on the CBDT circular and on the decision of Hon’ble Supreme Court in CIT Vs Citi Bank NA [2008 (8) TMI 766 - SUPREME COURT] and in American Express International Banking Corporation Vs CIT [2002 (9) TMI 96 - BOMBAY HIGH COURT] . We have noted that this issue is also covered in favour of the assessee, hence, we affirms the order of the ld CIT(A) and accordingly dismissed the ground of appeal raised by the revenue. Allowability of ESOP expenses - HELD THAT:- CIT(A) allowed relief to the assessee by following the order of his predecessor in assessee’s own case for AY 2009-10 as relying on M/S. BIOCON LIMITED AND OTHERS VERSUS THE DY. COMMISSIONER OF INCOME-TAX (LTU) AND OTHERS [2013 (8) TMI 629 - ITAT BANGALORE] Disallowance of urban (non rural) bad debts - HELD THAT:- The Tribunal while confirming the order of ld CIT(A) followed the decisions of Hon’ble Supreme Court in Catholic Syrian Bank Ltd vs CIT [2012 (2) TMI 262 - SUPREME COURT] and in CIT vs. Karnataka Bank Ltd [2013 (2) TMI 40 - SC ORDER]. Hence, we do not find any infirmity in the order passed by ld CIT(A), which we affirms. In the result this ground of appeal is dismissed.
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