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TMI Blog2014 (5) TMI 1030X X X X Extracts X X X X X X X X Extracts X X X X ..... he file of the assessing officer. The assessing officer shall consider the claim of the assessee u/s 35(1) and decide the same in accordance with law after giving reasonable opportunity of hearing to the assessee. - Decided against Revenue. Disallowance u/s 14A - assessee has not apportioned any expenditure towards this investment and earning of income therefrom - Held that:- even though no expenditure was incurred by the assessee, the Income-tax rules provide for computation of expenditure with regard to the investment made for earning exempted income. The earning of income or actual incurring of expenditure is immaterial for application of Rule 8D of the IT Rules. Therefore, this Tribunal cannot appreciate the contention of the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loyees' and employer's contribution to provident fund and ESI paid on or before the due date for filing the return of income u/s 139(1) has to be allowed as deduction while computing the taxable income. The CIT(A), in fact, followed the judgment of the Apex Court in CIT v. Vinay Cements Ltd. [2007] 213 CTR 268. Therefore, this Tribunal do not find any infirmity in the order of the lower authority. Accordingly, the order of CIT(A) is confirmed. 5. Now coming to the appeal of the assessee, Shri Samuel Thomas, the ld.representative for the assessee submitted that the assessee claimed weighted deduction of 150% on the expenditure incurred on scientific research u/s 35(2AB) of the Act. The assessee has also claimed alternatively, norm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before this Tribunal is that in view of section 35(2AB), no deduction shall be allowed u/s 35(1) of the Act. 8. We have carefully gone through the provisions of section 35(1) and section 35(2AB) of the Act. If the claim of the assessee u/s 35(2AB) is allowed, then the assessee may not be eligible for further deduction u/s 35(1) of the Act. In this case, the claim of the assessee u/s 35(2AB) was not allowed. Therefore, the provisions contained in section 35(2AB) may not prevent the assessing officer to consider the claim of the assessee u/s 35(1) of the Act. Hence, in exercise of the appellate powers of this Tribunal, the alternative claim of the assessee u/s 35(1) of the Act is remanded back to the file of the assessing officer. The asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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