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TMI Blog2018 (11) TMI 1715X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 2,59,79,368/- under section 80IB of the Act as disallowed by the AO on the ground that profit from hedging of menthol oil in the commodity exchange did not have a nexus with the manufacturing activity of the Jammu unit and is not eligible for deduction under section 80IB of the Act. 3. The Ld. A.R., at the outset, submitted before the Bench that the issue is covered in favour of the assessee in the earlier year by the decision of the co-ordinate bench of the Tribunal in assessee's own case in ITA No.552/M/2015 & ors. A.Y. 2011-12 & ors. vide order dated 27.10.17 and therefore, following the said decision the ground raised by the Revenue should be dismissed. 4. The Ld. D.R. fairly agreed to the contention of the Ld. A.R. that issue is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owance of Rs. 1,90,365/- as made by the AO towards expenditure incurred towards maintenance of business units at Daman without appreciating the fact that the said unit has already closed its business activity in F.Y. 2005-06 and no manufacturing activity was being carried on/conducted at the Daman unit. The Ld. A.R., at the outset, submitted that the issue is squarely covered in favour of the assessee by the decision of co-ordinate bench of the Tribunal in assessee's own case in ITA No.552/M/2015 & ors. A.Y. 2011-12 & ors. vide order dated 27.10.17. The Ld. A.R. submitted that the similar issue of disallowance of expenses of Daman unit was involved in the said case and the co-ordinate bench of the Tribunal has decided the issue in favour of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowance under section 14A read with rule 8D at Rs. 22,98,000/- comprising disallowance of interest of Rs. 12,51,854/ under Rule 8D(2)(ii) and Rs. 9,73,312/- under rule 8D2(iii) besides the suo-moto disallowance of the assessee Rs. 72,834/- under rule 8D2(i). Thus after allowing the credit of suo-moto disallowance by the assessee added a net amount of Rs. 22,25,166/- to the income of the assessee. 12. In the appellate proceedings, the Ld. CIT(A) allowed the appeal of the assessee on two grounds. First, the Ld. CIT(A) came to the conclusion that AO has not recorded any satisfaction as to the suo-moto disallowance being incorrect having regards to the books of account maintained by the assessee in absence of which rule 8D could not be in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under rule 8D2(iii), we find that the co-ordinate bench of the Tribunal in the assessee's own case in ITA No.552/M/2015 & ors. A.Y. 2011-12 & ors. vide order dated 27.10.17 directed the disallowance of 5% of the dividend income which is as per the decision of the co-ordinate bench of the Tribunal in assessee's own case in earlier year. The relevant para is reproduced as under: "18. It is the submission before us that a reasonable disallowance may be estimated. Therefore, taking the totality of facts and circumstances into consideration, we direct the Assessing Officer to restrict the disallowance under Rule 8D(2)(iii) to 5% of the dividend income earned by the assessee. In the result the ground raised by the assessee is partly allowed." ..... X X X X Extracts X X X X X X X X Extracts X X X X
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