TMI Blog2003 (1) TMI 642X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) has erred in law and on the facts while upholding the disallowance of proportionate premium payable on redemption of debenture as revenue expenditure. 3.That the ld. CIT(A) has erred in law and on the facts while disallowing Rs. 10,873 out of telephone expenses. 4.That the ld. CIT(A) has erroneously upheld the action of the learned Assessing Officer for the reduction of claim under section 80-I from Rs. 6,88,017 to nil. 5.That the ld. CIT(A) has erred in law and on the facts while rejecting the assessee s contention that no adjustment in the relief claimed under section 80-I could be made in view of the order of Hon ble ITAT in appellant s own case for assessment year 1990-91. 6.That the ld. CIT(A) has erred in law and on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt has held that no addition has been made in the earlier years, the opening balance could not be considered in the year in question for the purpose of computation of disallowance. The facts of the assessee are duly covered by the aforesaid decision because in the earlier year when the money was advanced by the assessee, the Assessing Officer did not make any disallowance and no finding has been recorded by the Assessing Officer that the money so advanced by the assessee to these parties was for non-business purposes. In the absence of findings by the Assessing Officer for the assessment year in which the money was advanced, we feel that no disallowance can be made during the year and accordingly we allow this ground of appeal of the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Ground Nos. 4 5 relate to the reduction of claim of the assessee made under section 80-I from Rs. 6,88,017. After hearing the rival submissions and perusing the material on record, we find that the assessee has claimed a relief to the extent of Rs. 688017. The Assessing Officer noted that the spinning unit was not working independently and the combing unit first purchased greezy wool, manufactured wool tops and transferred these to the spinning unit and not at the prevailing market rate due to which the profit of the spinning unit got increased. Therefore, by applying provisions of section 80-I(6),(8),(9), the Assessing Officer made adjustment in the transfer price and after making other adjustments for administrative and other expens ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase in the value of the closing stock are hereby confirmed in the absence of any plea or arguments being advanced before us. We, therefore, restore these grounds of appeal to the file of the Assessing Officer directing him to recompute the deduction under section 80-I on the basis of our aforesaid findings. 6. Ground No. 6 relates to the reduction under section 80HHC from Rs. 7,61,342 to Rs. 7,56,348. Both the parties to the dispute agreed that this issue is duly covered in favour of the assessee by the decision of this Tribunal in the case of Malwa Cotton Spg. Mills Ltd. [IT Appeal Nos. 264 and 408 (Chd.) of 1996] where this Tribunal has taken a view that items like CST and ST (Central Sales Tax and Sales Tax) are not to be included ..... X X X X Extracts X X X X X X X X Extracts X X X X
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