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2015 (7) TMI 1210 - ITAT MUMBAI

2015 (7) TMI 1210 - ITAT MUMBAI - TMI - Claim of deprecation on intangible assets - Held that:- Notably in the past years, assessee had purchased Inter Trade Division of Mahindra & Mahindra Ltd. on a going concern basis and the excess of purchase consideration over the book value of the assets and liabilities taken over was considered as cost acquisition of various intangibles. The depreciation claimed on the acquisition of such intangibles was denied by the Tribunal vide its order for the asses .....

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tive expenses relatable to the earning of exempt income; and, such disallowance was worked out by the application of clause (iii) of Rule 8D(2). Ld. CIT(A) has also sustained the disallowance by noticing that assesse has not brought any material on record to show as to how the disallowance was not reasonable.Before us, the inability of the assessee to prove unreasonableness of the disallowance continues, as noticed by the Ld. CIT(A); and, therefore, we hereby affirm the disallowance of ₹ 1 .....

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the stand of the Lower Authorities in deciding the issue against the assessee. Thus, on this aspect also assessee fails. - Addition on account of discrepancy in the AIR report - Held that:- CIT(A) has directed the AO to give further opportunity to the assessee and thereafter decide the issue afresh. We find no reason for any grievance on the part of the assessee as the Ld. CIT(A) has directed the AO to give opportunity to the assessee of being heard and thereafter pass an order afresh. The s .....

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r the relevant period which clearly supports the inference drawn by the Ld. CIT(A). On the basis of the balance sheet as on 31/3/2009, it is quite clear that the loan funds in this year have substantially decreased than the preceding year. Further, the entire investment which yielded exempt income has been made during the year under consideration. Further the assessee has earned profit after tax of ₹ 4471.11 lacs and the share capital plus reserves and surplus of the assessee company stand .....

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t any cogent reasoning or material which would enable us to take a view different than of the Ld. CIT(A). Therefore, we hereby affirm the order of Ld. CIT(A) on this aspect. - ITA No. 1822/MUM/2013, ITA No. 1566/Mum/2013 - Dated:- 31-7-2015 - G. S. Pannu (Accountant Member) And Sanjay Garg (Judicial Member) For the Assessee : Bhavin Shah For the Revenue : Yogesh Kamat ORDER G. S. Pannu (Accountant Member) The captioned cross-appeals filed by the assessee and Revenue pertaining to A.Y. 2009-10 ar .....

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AO and thereafter, the Ld. CIT(A) have declined the assessee's claim for depreciation on the basis of the earlier years. At the time of hearing before us, Ld. Representative of the assessee fairly conceded that for assessment year 2000-2001 the Tribunal vide its order in ITA No.8276/Mum/2004 dated 9/5/2008 has decided the issue against the assessee. Notably in the past years, assessee had purchased Inter Trade Division of Mahindra & Mahindra Ltd. on a going concern basis and the excess o .....

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The next issue raised by the assessee is with regard to a disallowance of ₹ 10,31,252/- sustained by Ld. CIT(A) under section 14A of the Act based on clause (iii) of Rule 8D(2) of the Rules. 5. Notably, the assessee was found to have made investments, which yielded exempted dividend income to the tune of ₹ 1,42,73,000/-. The AO invoked the provisions of section 14A of the Act and disallowed a sum of ₹ 10,31,252/- being administrative expenses relatable to the earning of exempt .....

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lso the assessee fails. 6. The third issue in this appeal is with regard to an amount of ₹ 9,46,480/- which represented liability towards post retirement medical claim for the employees. The AO as well as the Ld. CIT(A) declined the claim for deduction on the ground that it was a contingent liability whose outcome was dependent on contingent factors of future obligations. The Ld. CIT(A) further noticed that the impugned amount was neither paid to the employees during the year and nor it wa .....

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said precedent, we hereby affirm the stand of the Lower Authorities in deciding the issue against the assessee. Thus, on this aspect also assessee fails. 7. The next issue is with respect to an addition of ₹ 65,751/- made by the AO on account of discrepancy in the AIR report. Ld. CIT(A) has directed the AO to give further opportunity to the assessee and thereafter decide the issue afresh. We find no reason for any grievance on the part of the assessee as the Ld. CIT(A) has directed the AO .....

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aw. We find no infirmity in the said direction of Ld. CIT(A), which is hereby affirmed. 9. In the result appeal of the assessee is partly allowed. 10. In the cross appeal of the Revenue the only issue raised is against the decision of Ld. CIT(A) in deleting an addition of ₹ 84,16,188/- made by the AO under section 14A of the Act on the basis of clause (ii) of Rule 8D(2) of the Rules. 10.1 In this context brief facts are that the AO observed that interest expenditure relatable to the earnin .....

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