Reclassification, differential duty, confiscation and penalties quashed where department lacked chemical evidence and improperly reopened past clearan...
ITAT allowed the assessee's appeal in major respects. Disallowance under s.14A was deleted as the assessee had self-disallowed and requisite satisfaction was recorded; interest disallowance under Rule 8D(2)(ii) and administrative-cost disallowances were restricted to investments that actually earned exempt dividends. Weighted deduction under s.35(2AB) for the Rohtak unit was allowed. Provisional liabilities relating to FPI-OE components were deleted. Sharing of resources with group entities and CSR expenditure were allowed. Income from mutual funds/shares held as investment classified as capital gains, not business income. CBDT circular applied retrospectively. Additions under s.40(a)(i)/s.195 were deleted; certain excise/customs/PLA issues allowed or remitted per higher-court directions; royalty and R&D cess disallowances deleted.
ITAT allowed the assessee's appeal in major respects. Disallowance under s.14A was deleted as the assessee had self-disallowed and requisite satisfaction was recorded; interest disallowance under Rule 8D(2)(ii) and administrative-cost disallowances were restricted to investments that actually earned exempt dividends. Weighted deduction under s.35(2AB) for the Rohtak unit was allowed. Provisional liabilities relating to FPI-OE components were deleted. Sharing of resources with group entities and CSR expenditure were allowed. Income from mutual funds/shares held as investment classified as capital gains, not business income. CBDT circular applied retrospectively. Additions under s.40(a)(i)/s.195 were deleted; certain excise/customs/PLA issues allowed or remitted per higher-court directions; royalty and R&D cess disallowances deleted.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4824 
Join Channel 
