ITAT Mumbai Judgments — August 2017

The Tribunal held that since identical additions on account of water charges were deleted by the ITAT in the assessee's own case for earlier years, the CIT(A) erred in upholding the disallowance. The Tribunal followed its previous decision.

The Tribunal held that the deduction under Section 54EC was allowable for investments made in two different financial years, following High Court precedents. For Section 14A, the Tribunal held that no disallowance was permissible when shares were held as stock-in-trade and dividend income was incidental.

The Tribunal held that no disallowance under Section 14A was permissible as no exempt income was claimed. It also upheld the deletion of additions related to corporate guarantee commission and employee PF contributions, finding the CIT(A)'s orders to be correct.

The Tribunal restored the issue of classifying interest income to the AO for fresh adjudication. It also directed the AO to restrict Section 14A disallowance to 2% of exempt income and deleted disallowances for book profit computation under Section 115JB.