TaxTMI 
TaxTMI 
2025 (2) TMI 1370
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....66/Mum/2024 (Assessee's appeals) 2. The only common dispute in these appeals relates to disallowance made u/s. 14A of the Income Tax Act, 1961 read with Rule 8D. 3. Briefly the facts are, the assessee is a resident corporate entity engaged in the business of manufacture and sale of power equipment's. In course of assessment proceedings for the impugned assessment years, the Assessing Officer (AO) noticed that in the assessment years under dispute, the assessee had earned substantial amount of exempt income. Whereas, suo motu, it has disallowed an amount of Rs. 4,94,416/- in A.Y. 2015-16 and Rs. 4,15,860 in A.Y. 2016-17. On verification of the materials available on record, the A.O. noticed that the average value of exempt income yield....
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....xempt income during the previous years relevant to assessment years under dispute. In case, the A.O. requires the details of investment yielding exempt income during the years under dispute, the assessee is directed to provide the same. Hence, these grounds are partly allowed. 7. In the result, the appeals are partly allowed. ITA Nos. 6040 & 6041/Mum/2024 (Revenue's appeal) 8. The first common issue arising in ground numbers 1 and 2 of both the appeals relates to deletion of disallowance made of deduction claimed u/s. 35(2AB) of the Act. 9. Briefly the facts are, in course of assessment proceeding, the A.O., while examining assessee's claim of weighted deduction u/s. 35(2AB) of the Act, noticed that the quantum of deduction clai....
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....dentical issue in assessee's own case in A.Ys. 2011-12 to 2014-15, the Tribunal has taken a consistent view that the assessee is entitled to avail the weighted deduction in respect of the expenditure incurred on Scientific Research irrespective of the quantum mentioned in the certificate issued by DSIR. Factual position being identical in the impugned assessment years, we do not find any reason to deviate from the consistent view expressed by the co-ordinate bench. Suffice to say, the amendment to Form 3CL does not apply to the assessment years under dispute. In view of the aforesaid, we do not find any valid reason to interfere with the decision of learned first appellate authority. Grounds are dismissed. 14. The next common issue arisi....
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....-15 and uphold the decision of learned first appellate authority. Grounds are dismissed. 17. The only other issue left out relates to deletion of disallowance made on account of club expense in A.Y. 2016-17. Briefly stated, in course of assessment proceeding, the A.O., while verifying the tax audit report, notice that the assessee has claimed club expenses amounting to Rs. 5,01,278/-. He observed that while considering identical issue in assessee's case in A.Ys. 2010-11 to 2013-14, the Dispute Resolution Panel (DRP) has upheld the disallowance. Accordingly, the A.O. disallowed the deduction claimed by the assessee. While deciding the issue in appeal, learned first appellate authority, having found that identical issue arising in assessee....