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2010 (12) TMI 879 - ITAT, MUMBAIDisallowance - Closure of unit or closure of business - the closure of Kavesar unit had no impact on the main business of the Assessee company viz., that of manufacture of paints - whether various activities carried on by the Assessee constitute the same business or separate business no single test can be devised as universal and conclusive - held that:- alternative claim of the Assessee that expenses incurred to protect a business asset should be allowed as deduction - the claim for depreciation is also directed to be allowed - In the result, the ground of appeal of the revenue is dismissed while that of the Assessee is partly allowed Regarding disallowance u/s 14A - specific plea has been taken by the assessee before the Assessing Officer that no expenses were incurred by the assessee for earning the tax free income - As rightly contended on behalf of the assessee, the assessee should not be put in more disadvantageous position in the set aside proceedings before the Assessing Officer. The Assessing Officer will take into consideration all aspects and compute the disallowance to be made under section 14A of the Act - Appeal is allowed for statistical purpose
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