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2020 (7) TMI 717 - AT - Income TaxAddition u/s 14A r.w.r. 8D - investments from which the appellant has not earned any exempt income - assessee suo motu has disallowed an amount u/s 14A r.w.r. 8D - HELD THAT:- As relying on VIREET INVESTMENT (P.) LTD. [2017 (6) TMI 1124 - ITAT DELHI] we find substance in the argument made by the Ld. Senior Counsel appearing for the assessee to this effect that only those investments are to be considered for computing average value of investment which yielded exempt income during the year. In that view of the matter we find it fit and proper to restore the matter to the file of the Ld. AO for re-computing the disallowance under Section 14A in terms of the observation made hereinabove. Hence, this ground is allowed for statistical purposes. Nature of expenses - river diversion expense and HT line shifting expense - revenue or capital expenditure - HELD THAT:- It became necessary for the appellant to shift the same for mining operation; similarly river diversion was also necessary to undertake the mining activities. Assessee has not spreaded particular expenditure over a period of years as it reflects from the return filed by it and it has claimed the entire expenditure as deductable in the same year. The assessee has claimed the expenditure in this particular year in which it has been incurred and, therefore, when it has chosen to claim the entire expenditure spent it is justifiable to allow such claims for the year under consideration invoking the provision of Sec. 36(1)(iii) of the Act and also the ratio laid down by the judgment TAPARIA TOOLS LIMITED VERSUS JOINT COMMISSIONER OF INCOME TAX [2015 (3) TMI 853 - SUPREME COURT] - we allow the entire claim of the assessee. The addition is, therefore, deleted. - Decided in favour of assessee.
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