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Issues involved: Appeals filed by Revenue against common order dated 02-09-2011 passed by the Learned Commissioner of Income-tax (Appeals)-III, Ahmedabad for Assessment Years (AYs) 2005-06 and 2008-09.
ITA no.2920/Ahd/2011: The issue in this appeal is the disallowance made u/s 14A of the Income-tax Act, 1961. The Revenue's grievance is restricting the disallowance to Rs.75,000 out of Rs.10,80,058. The learned AR argued that the AO's invocation of Rule 8D is illegal as it pertains to AY 2005-06. Relying on case laws, it was contended that Rule 8D is not retrospective. The Tribunal remitted the matter back to the AO for fresh consideration based on judicial pronouncements, following the decision in Minda Investments Ltd. vs. DCIT. ITA no.2921/Ahd/2011: In this appeal, the Revenue challenged the deletion of disallowance u/s 14A and addition u/s 41(1) of the Act. The AO invoked Rule 8D for AY 2008-09, which was contested by the learned AR. The Tribunal decided to remit the matter back to the AO for fresh consideration based on judicial pronouncements. Regarding the addition of Rs.7,70,047, both parties agreed that the issue is covered by the decision of the Hon'ble Punjab & Haryana High Court in the case of CIT vs. GP International Ltd. The Tribunal dismissed the Revenue's ground and decided the issue in favor of the assessee based on the High Court's decision. In conclusion, ITA No.2920/Ahd/2011 was allowed for statistical purposes, and ITA No.2921/Ahd/2011 was partly allowed for statistical purposes.
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