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2020 (7) TMI 467 - AT - Income TaxMAT Computation - Addition on account of subsidy received on the Technology Upgradation Fund (TUF) - computation of book profit under Section 115JB - HELD THAT:- Proposition that book profit is not to be tinkered with is duly supported by Hon'ble Jurisdictional High Court decision in M/S. BHAGWAN INDUSTRIES LTD. [2017 (8) TMI 32 - BOMBAY HIGH COURT], AKSHAY TEXTILES TRADING AND AGENCIES P. LTD. [2007 (10) TMI 251 - BOMBAY HIGH COURT] AND ADBHUT TRADING CO. P. LTD. [2011 (7) TMI 716 - BOMBAY HIGH COURT] Hon’ble Supreme Court in the case of ACIT vs Saurashtra Kutch Stock Exchange Ltd [2008 (9) TMI 11 - SUPREME COURT] has expounded that non-consideration of jurisdictional High Court decision can render a decision of the Tribunal suffering from mistake apparent from record. We note that honourable Supreme Court in the case of Kapurchand Shrimal v CIT [1981 (8) TMI 2 - SUPREME COURT] had expounded that it is the duty of the appellate authority to correct the errors in the orders of the authorities below and remit the matter, with or without directions for their consideration, unless prohibited by law. In our considered opinion, this issue needs to be remitted to the file of learned CIT(A). The learned CIT(A) is directed to consider this issue de novo after taking into account the aforesaid Hon’ble Jurisdictional High Court decisions. Needless to add, the assessee should be granted adequate opportunity of being heard. Disallowance u/s 14A of the Act read with rule 8D(2)(ii) - HELD THAT:- We find that it has not been denied by the Assessing Officer that assessee has sufficient interest free funds. However, the Assessing Officer has held that assessee has not submitted the cash flow statement. CIT(A) is correct in holding that if assessee has sufficient interest free funds, no disallowance under Section 14A of the Act on account of interest for funds utilised for earning the exempt income needs to be done. See HDFC BANK LTD. [2014 (8) TMI 119 - BOMBAY HIGH COURT]. Disallowance with respect to employees contribution to the Provident Fund under Section 36(1)(va) - HELD THAT:- The issue is squarely covered in favour of the assessee by the decision of Hon’ble Bombay High Court in CIT vs Ghatge Patil Transports Ltd. [2014 (10) TMI 402 - BOMBAY HIGH COURT] that the said contributions made before the due dates of return or grace period is allowable. Hence, we uphold the order of ld. CIT(A) in this regard.
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