Tribunal grants appeal, directs AO to verify service tax reduction claim & reexamine disallowed expenses.

The Tribunal allowed the appeal filed by the assessee, directing the Assessing Officer to verify the claim for reduction of service tax amount and reexamine the disallowed expenses. The disallowance under section 14A was found reasonable, with instructions to restrict the addition to the initially disallowed amount. The computation of book profit was addressed in line with legal precedents. Issues not pursued were not adjudicated. The decision was issued on February 1, 2017.

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Issues Involved:
1. Claim for reduction of service tax amount while computing rent received.
2. Challenge to disallowance of various expenses.
3. Disallowance under section 14A of the Income Tax Act.
4. Disallowance of certain expenses while computing book profit.
5. Disallowance of Securities Transaction Tax while computing book profit.

Issue No.1:
The assessee sought a reduction of service tax amount while calculating rent received. The documents supporting this claim were not specifically discussed by the Assessing Officer or CIT(A). The Tribunal set aside the CIT(A)'s decision and directed the Assessing Officer to verify the claim with the provided documents, granting the assessee an opportunity to be heard.

Issue No.2:
The challenge was against the disallowance of advertisement, legal, and miscellaneous expenses. The CIT(A) did not adequately examine the evidence presented by the assessee. The Tribunal remanded the issue to the Assessing Officer for a fresh decision, considering the evidence and providing the assessee with a chance to be heard.

Issues No.3 to 5:
These issues pertained to the disallowance under section 14A of the Act. The Tribunal found the disallowance made by the assessee reasonable and directed the Assessing Officer to restrict the addition to the amount initially disallowed by the assessee. The Tribunal also addressed the computation of book profit in line with relevant legal precedents.

Issue No.6:
The assessee did not pursue this issue, and hence, it did not require adjudication.

Issue No.7:
This general issue did not necessitate adjudication.

In conclusion, the Tribunal allowed the appeal filed by the assessee, with specific directions given on various issues, including the reduction of service tax amount, examination of expenses, disallowance under section 14A, and computation of book profit. The decision was pronounced on February 1, 2017.

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