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2020 (4) TMI 398 - AT - Income TaxAddition u/s 68 - share application money and unsecured loans - identity of the persons and genuineness of the transaction - HELD THAT:- Additional evidence is likely to prove that the assessee has allotted the shares to the applicants who have allegedly invested in the assessee company and advanced unsecured loans to the assessee company. All this information needs verification by the AO. Therefore, we deem it fit and proper to admit and remand the additional evidence to the file of the AO for de novo consideration in accordance with law. The assessee’s grounds of appeal on this issue are treated as allowed for statistical purpose. Disallowance of expenditure - assessee submitted that he has submitted all the details before the CIT (A) but the CIT (A) has only allowed part of expenditure and what has been disallowed is also interest on working capital allowance, factory expenses, professional and consultancy charges etc. - expenditure is disallowed and added to the returned income, it would increase the income of the assessee and therefore, the said income is eligible for deduction u/s 80IB of the Act which is the alternate claim of the assessee to the claim of deduction u/s 10AA - HELD THAT:- Assessee’s claim of expenditure is to be considered by the AO afresh. In view of the same, we deem it fit and proper to remand the issue to the file of the AO for de novo consideration afresh. Further, we also make it clear that if the expenditure is disallowed, which would in turn increase the income of the assessee, the same is allowable as deduction which is allowable to the assessee u/s 80IB of the Act. Disallowance of expenditure - assessee submitted that there is a disallowance of salaries and professional charges on the ground that there was no TDS made by the assessee and therefore, the disallowance was proposed to be upheld u/s 40(a)(ia) - submitted that the assessee has not been treated as “assessee in default” u/s 201(1) of the Act for such an amount and therefore, the disallowance u/s 40(a)(ia) is not to be upheld - HELD THAT:- Since we have set aside the entire issue to the file of the AO, we direct the AO to consider the assessee’s arguments on this issue as well. Disallowance u/s 10AA - assessee submitted that the assessee in its return of income had claimed deduction u/s 10AA of the Act but alternatively has filed the revised computation of income making the alternative claim u/s 80IB of the Act - HELD THAT:- After hearing both the parties, we deem it fit and proper to admit the additional grounds on this issue and remand the same to the file of the AO with a direction to consider the assessee’s claim of deduction u/s 80IB of the Act and if the assessee satisfies all the conditions for allowance of deduction u/s 80IB, we direct the AO to allow the same. In view of the same, the assessee’s appeal is treated as allowed for statistical purposes.
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