9911796707
TMI Blog2015 (8) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... elates to the deletion of the addition of Rs. 54.97 lakhs made u/s. 14A of the Act. In respect of other 6 grounds of appeal, the Ld. DR stated that the Revenue has no case, neither on facts nor on the point of law. 3. With this factual background, we take each ground of appeal one by one . Ground No. 1,2 & 3 relate to the allocation of expenses like interest, depreciation and finance charges between 80IB and non 80IB units. 3.1. The Ld. CIT(A) has considered these issues vide ground No. 2 of his order wherein the Ld. CIT(A) observed that the assessee has claimed deduction u/s. 80IB of the Act in respect of its Silvassa unit. The deduction was claimed at Rs. 6,60,95,278/-. The AO examined the allocation of expenses on different units as th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rieved by this, the Revenue is before us. As mentioned elsewhere, the Ld. DR has fairly conceded that the Revenue has no case, we therefore decline to interfere with the findings of the Ld. CIT(A). Ground No. 1,2 & 3 are accordingly dismissed. 5. Ground No. 4.1 relates to the denial of opportunity to the AO before admitting new facts as per Rule 46A. 6. The Ld. DR failed to bring any new facts considered by the Ld. CIT(A) which deprived the AO from making his comment. We, therefore, do not find any reason to entertain this ground. Ground No. 4.1 is accordingly dismissed. 7. Ground No. 4.2 relates to the deletion of the disallowance of Rs. 42,61,285/- on account of short credit of interest subsidy. 8. The Ld. CIT(A) has considered this i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has considered ground No. 4 of the appeal before him and at para 6.3, the Ld. CIT(A) observed that there is no such disallowance mentioned by the tax auditors at clause 21 of the Tax Audit report therefore, it is not known why the AO has disallowed the amount of Rs. 1,92,703/-. On finding no reason for the disallowance, the Ld. CIT(A) deleted the addition. 9.2. As the Ld. CIT(A) has deleted the addition by categorically stating that the AO has not given any reason for the disallowance we decline to interfere. Ground No. 5 is accordingly dismissed. 10. Ground No. 6 relates to the deletion of the addition of Rs. 15 crores made u/s. 68 of the Act. 11. While scrutinizing the return of income, the AO noticed that the assessee had taken an un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Ld. CIT(A) deleted the addition. 13. Before us, the Ld. DR could not bring anything in support of the assessment order. 14. We have given a thoughtful consideration to the findings of the Ld. CIT(A) in the light of the decision of the Hon'ble Supreme Court in the case of Lovely Exports (supra). We do not find any reason to interfere with the findings of the Ld. CIT(A). Ground No. 6 is accordingly dismissed. 15. Ground No. 7 relates to the deletion of the addition of Rs. 54.97 lakhs made u/s. 14A of the Act. 16. This issue has been considered by the Ld. CIT(A) at para-10 of his order qua ground No. 8 of assessee's appeal before him. While scrutinizing the balance sheet of the assessee, during the course of the scrutiny assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the case of Godrej & Boyce Manufacturing Co. Ltd. 328 ITR 81 Vs DCIT and restricted the disallowance at Rs. 4,20,265/- and directed to delete the amount of Rs. 54.97 lakhs. 18. Aggrieved by this, the Revenue is before us. 19. The Ld. DR could not controvert the finding of the fact by the Ld. CIT(A) that the interest has been paid on term loan taken for the purchase of the fixed assets and therefore there cannot be any disallowance of interest as the Ld. CIT(A) has categorically stated that no direct expenditure has been incurred. We, therefore, decline to interfere with the addition sustained by the Ld. CIT(A) and simultaneously we also decline to interfere with the deletion of the addition made by the Ld. CIT(A). Ground No. 7 is ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
