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2017 (5) TMI 1213 - ITAT MUMBAIDisallowance of prior period expenses - CIT-A allowed claim - Held that:- We find no reasons to interfere with the decision of the CIT(A) which is based on the decision of our Co-ordinate Bench in the case of Deccan Chronicle Holdings Ltd. (2014 (9) TMI 1072 - ITAT HYDERABAD). In so far as the objection of the Assessing Officer that it was a prior period expenditure, in our view, the same has been correctly negated by the CIT(A). Ostensibly, the impugned expenditure may pertain to an activity of an earlier year, so however, the CIT(A) has recorded a categorical finding that the liability for the same has crystallized during the instant year as requisite bills were received during the previous year relevant to the assessment year under consideration. For the said reasons, we find no infirmity in the ultimate decision of the CIT(A) in deleting the addition - Decided against revenue. Addition u/s 14A - assessee has made investments in shares and securities, which is capable of generating exempt income - Held that:- Factually speaking, there is no dispute to the fact that during the year under consideration assessee has not received any exempt income and, therefore, on this count alone no disallowance under section 14A is merited following the ratio in the case of Cheminvest Ltd. (2015 (9) TMI 238 - DELHI HIGH COURT ). The other finding of the CIT(A) with regard to the availability of sufficient interest free funds is also quite justified and is borne out of record as there is no material led by the Revenue to controvert the same. For the said reason also the disallowance of interest expenditure under section 14A of the Act is quite unjustified. We therefore, deem it fit and proper to affirm the action of the CIT(A) in deleting the disallowance - Decided against revenue
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