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2017 (1) TMI 938 - ITAT PUNEDeduction u/s. 80IA on the addition made u/s. 14A r.w. Rule 8D - Held that:- It is an undisputed fact that the assessee is eligible to claim deduction u/s. 80IA of the Act. The effect of disallowance u/s. 14A r.w. Rule 8D is that there is increase in profits. The assessee is eligible to claim deduction on such increase in profits, as the said profits are arising from the business of assessee eligible to claim deduction u/s. 80IA of the Act. Similar view has been taken by the Tribunal in the case of ITO Vs. Kalbhor Gawade Builders (2013 (2) TMI 68 - ITAT PUNE ). Further, we find that disallowance u/s. 14A r.w. Rule 8D was made in the case of assessee on similar grounds in assessment year 2009-10. The assessee carried the issue in appeal before the Tribunal. The Co-ordinate Bench of the Tribunal decided the issue in favour of the assessee. As the issue raised by the Department in appeal has already been decided in favour of the assessee in the immediately preceding year and in the light of CBDT Circular dated 2nd November, 2016, the present appeal by the Department is liable to be dismissed.
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