Company investments and subsidies: s14A interest disallowance barred with surplus funds; industrial subsidies treated capital, MAT additions denied

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....Disallowance under s.14A r.w. Rule 8D(2)(ii) was held impermissible because the assessee established availability of surplus own funds for making investments yielding exempt income; hence no interest disallowance could be attributed to such investments, and the disallowance was deleted. Disallowance under Rule 8D(2)(iii) was held untenable absent the AO's recorded objective satisfaction, as mandated by s.14A and settled law; the direction to recompute based on proper satisfaction was sustained. Sales tax and power subsidies were treated as capital receipts since the dominant purpose was industrial development and employment generation; addition to book profit u/s 115JB was rejected. Additional depreciation and bad-debt write-off/provision t.........