TMI Blog2018 (11) TMI 1715X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowance towards expenditure incurred towards maintenance of business units at Daman - said unit has already closed its business activity in F.Y. 2005-06 and no manufacturing activity was being carried on/conducted at the Daman unit - HELD THAT:- As decided in own case [ 2017 (11) TMI 181 - ITAT MUMBAI ] issue in favour of the assessee by directing the AO to allow the said expenditure for computing the income of the assessee. The co-ordinate bench of the Tribunal has held that the expenditure incurred by the assessee in normal maintenance of the business has to be allowed in spite of closure of the operation of the unit. We, therefore, respectfully following the same, direct the AO to allow the said expenditure. Accordingly, we uphol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 115JB sub section (ii) is to be made without resorting to the computation as contemplated under section 14A read with rule 8D. We, therefore, following the same direct the AO decide the issue in terms of the special bench decisions as stated above. - ITA No. 1694/Mum/2017 - - - Dated:- 14-11-2018 - SHRI RAJESH KUMAR, ACCOUNTANT MEMBER AND SHRI AMARJEET SINGH, JUDICIAL MEMBER For the Appellant : Shri Rajeev Gubgotra, A.R. For the Respondent : Shri Ashok Mehta, D.R. ORDER Per Rajesh Kumar, Accountant Member: The present appeal has been preferred by the Revenue against the order dated 28.11.2016 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from hedging contracts is the income from speculation business. In assessee's own case the Coordinate Bench in earlier years held that income from hedging contracts is a business income thus respectfully following the said decision we uphold the order of the Ld.CIT(A) in holding that he hedging loss is the business loss in the case of the assessee not a speculation loss. Grounds raised by the Revenue on this issue are dismissed. 6. We, therefore, respectfully following the decision of the coordinate bench of the Tribunal as referred to above , uphold the decision of the Ld. CIT(A) in which the Ld. CIT(A) has decided the issue in favour of the assessee by following the order of ITAT in assessee s own case in A.Y. 2006-07. Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he issue in favour of the assessee by directing the AO to allow the said expenditure for computing the income of the assessee. The co-ordinate bench of the Tribunal has held that the expenditure incurred by the assessee in normal maintenance of the business has to be allowed in spite of closure of the operation of the unit. We, therefore, respectfully following the same, direct the AO to allow the said expenditure. Accordingly, we uphold the order of Ld. CIT(A) by dismissing the ground of the revenue. 10. The issue raised in ground No.3 is against the deletion of disallowance of ₹ 22,25,166/- by Ld. CIT(A) against the addition made by the AO under section 14A of the Act read with Rule 8D of IT Rules. 11. The facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proportionate disallowance of interest under rule 8D2(ii) is required to be made. The Ld. CIT(A) relied on the decision of Hon ble Bombay High Court in the case of CIT vs. Reliance Utilities and Power Ltd. (2009) 313 ITR 340 (Bom) wherein it has been held that where the interest free funds available to the assessee in the business are sufficient to meet the investments then the presumption has to be drawn that investments were out of interest free funds available with the assessee. Finally, the Ld. CIT(A) allowed the appeal of the assessee. 13. After hearing both the parties and perusing the material on record, we find that so far as the disallowance under rule 8D2(ii) is concerned, there is fault or infirmity in the order of L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowance by Ld. CIT(A) as made by the AO under section14A to the book profit under section 115JB of the Act. 15. The facts in brief are that the AO has added the disallowance under section14A to the book profit of the assessee under section 115JB of the Act. 16. We have heard the rival submissions of both the parties and perused the material on record. We find that the issue involved in the present case is covered by the decision of the Special Bench in the case of ACIT vs. Vireet Investments Pvt. Ltd. (2017) 82 taxman.com 415 (Del. Trib. SB) wherein the Special Bench has held that the computation under clause f of explanation 1 to section 115JB sub section (ii) is to be made without resorting to the computation as conte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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