2014 (6) TMI 467

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.... the case, the CIT(A) is erred in law and on facts in restricting the disallowance to Rs.9,65,779/- out of total disallowance of Rs.15,96,007/- made by the AOI u/s 14A of the Income tax Act, 1961. 3. The order of the CIT (A) is erroneous and is not tenable on facts and in law." 2. Briefly, the facts are that the assessee company is engaged in the business of producing and marketing medicinal formulations. It had claimed deduction u/s 80 IC of the Act for Rs.12,80,69,194/-. In the earlier years for Assessment Year 2006- 07 to 2008-09 the similar deduction claimed stood initially disallowed as an action u/s 132 of the Act carried at business premises of the assessee as well as a survey proceedings on that date revealed that the assessee had....

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.... found no reason to disagree with him. He, therefore, allowed the ground raised in appeal before him. 4. In appeal before Appellate Tribunal, the parties have laid on record a copy of Tribunal order dated 7th day of February 2014 in assessee's own case in ITA No. 3287, 4072 & 4073/Del/2012 for A. Ys 2006-07 to 2008-09 and made reference to Para 45 to 54 thereof. The Appellate Tribunal has found itself in agreement with the Ld. CIT(A) that the value of old machinery is less then 20%. Since the accounts of the assessee are audited and a report in prescribed form has been submitted, the assessee can be said to have complied with the provisions of the Act for its claim of deduction. Hence, it has upheld the order of Ld. CIT(A) in allowing dedu....

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....rm part of total income as per working given in Para 4.6 of the Assessment Order as under:- " 4.6 The working of Rule 8D of Income Tax Rules, 1962 is as under:- The expenditure in relation to income which does not from part of the total income shall be the aggregate of following amounts namely: (i) the amount of expenditure directly relating to income which does not form part of total income (delay payment charges on shares) 5,69,615/- (ii) In a case where the assessee has incurred expenditure By way of interest during the previous year which is not Directly attributable to any particular income or receipt An amount computed in accordance with the following Formula, namely: A. Interest Expenses 6,07,962/- B. Average Investment 16,86,....