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2017 (2) TMI 649 - GUJARAT HIGH COURT

2017 (2) TMI 649 - GUJARAT HIGH COURT - TMI - Disallowance on account of proportionate interest and administrative expenses - Held that:- The assessee was already having enough fund for investment in tax free security and therefore, the learned CIT(A) directed to delete disallowance made on account of proportionate interest. The same has been confirmed by the learned tribunal. It is required to be noted that similar disallowance in the case of the very assessee for the A.Y. 2004-05 and the same .....

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the learned tribunal in para 21 to 27. We are in complete agreement with the reasons and the view taken by the learned tribunal. Under the circumstances, we see no reason to interfere with the impugned judgement and order passed by the learned tribunal so far as question No. [A] is concerned. - Decided against revenue. - Addition on account of unutilized modvat/cenvat credit - Held that:- Tribunal has taken note that with respect to modvat receivable account, there is corresponding less deb .....

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d against revenue. - Addition on account of project loss in relation to amount receivable from Mahanagar Gas Ltd. - Held that:- The said issue is squarely covered against the revenue in view of the decision of the Hon'ble Supreme Court in the case of T.R.F. Ltd. Versus Commissioner of Income Tax, reported in (2010 (2) TMI 211 - SUPREME COURT) wherein observed that with respect to bad debt claim, the assessee is required to establish only that the debt was written off and it is not necessary .....

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er passed by the learned Income Tax Appellate Tribunal (hereinafter referred to as the learned tribunal for short) in ITA No.1950/AHD/2011, by which the learned tribunal has dismissed the said appeal preferred by the revenue, revenue has preferred the present appeal with the following proposed questions of law :- [A] Whether the ITAT has erred in fact and in law in deleting the disallowance made by the AO on account of proportionate interest and administrative expenses of ₹ 25,41,310/-? [B .....

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sment under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ), the A.O. disallowed ₹ 8,84,372/- on account of proportionate interest and ₹ 16,54,333/- towards administrative expenses, under section 14A of the Act. The A.O. also made addition of ₹ 15,68,089/- on account of unutilized modvat/cenvat credit. The A.O. also made addition of ₹ 7,49,000/- on account of project loss in relation to amount receivable from Mahanagar Gas Ltd. 2.01. Feeli .....

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required to be noted that before the learned A.O. the assessee itself voluntarily offered ₹ 6 Lacs towards administrative expenses. 2.04. The learned CIT(A) allowed the appeal preferred by the assessee partly. The learned CIT(A) set aside the disallowance of ₹ 8,84,372/- made by the A.O. on account of proportionate interest. The learned CIT(A) estimated the administrative expenses at 2% of exempt dividend income as expenditure incurred for earning exempt income and restricted the di .....

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to amount receivable from Mahanagar Gas Ltd. 2.05. Feeling aggrieved and dissatisfied with the order passed by the learned CIT(A), revenue preferred appeal before the learned tribunal and the learned tribunal considering its earlier decision in the case of very assessee for the A.Y. 2004- 05, confirmed the order passed by the learned CIT(A) with respect to disallowance towards administrative expenses and consequently, the learned tribunal dismissed the said appeal preferred by the revenue confir .....

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w :- [A] Whether the ITAT has erred in fact and in law in deleting the disallowance made by the AO on account of proportionate interest and administrative expenses of ₹ 25,41,310/-? [B] Whether ITAT has erred in fact and in law in deleting the addition made by the AO on account of unutilized modvat/cenvat credit of ₹ 56,08,089/-? [C] Whether the ITAT has erred in fact and in law in deleting the addition made by the AO on account of project loss of ₹ 7,49,000/- in relation to am .....

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d therefore, the learned CIT(A) directed to delete disallowance at ₹ 8,84,372/- made on account of proportionate interest. The same has been confirmed by the learned tribunal. It is required to be noted that similar disallowance in the case of the very assessee for the A.Y. 2004-05 and the same has attained finality. The aforesaid has also been considered by the learned tribunal while passing the impugned judgement and order. 3.02. Now, so far as the disallowance of administrative expenses .....

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ce of ₹ 4,54,333/-. The aforesaid has been confirmed by the learned tribunal. The relevant discussion has been made by the learned tribunal in para 21 to 27. We are in complete agreement with the reasons and the view taken by the learned tribunal. Under the circumstances, we see no reason to interfere with the impugned judgement and order passed by the learned tribunal so far as question No. [A] is concerned. 3.03. Now, so far as question No.[B] i.e. with respect to addition made by the A. .....

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