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2015 (12) TMI 1550 - ITAT AHMEDABADDisallowance of depreciation in respect of RoU Crop compensation - Held that:- The facts of the case under appeal are exactly similar to the facts discussed in assessee’s own case by the co-ordinate bench and applying the same ratio, we are of the considered view that depreciation should be allowed on the cost of compensation paid for damage of crop to the land owner. Disallowance out of capital work in progress - Held that:- No specific defect has been pointed out by the Assessing Officer in the books of accounts of assessee maintained as well as details of capital expenditure incurred for the capital work in progress incurred to projects not completed upto the end of the year and also did not controvert to the suo moto allocation by the assessee of certain revenue expenditure which relates to the project under process. However, looking to the size of business of the assessee as well as impossibility of bifurcation of each and every expenditure falling under various heads and also looking to the figure of capital work in progress for the year under appeal at ₹ 588.97 crores vis-à-vis total revenue of the assessee at ₹ 447.27 crores, in order to meet the ends of justice we deem it proper to sustain disallowance @ 1% of total employee cost of the company at ₹ 7,63,31,420/- and 1% of administrative and other expenses of ₹ 4,71,50,100/- and accordingly the sustained disallowance will arrive at ₹ 12,35,815/-. Thus in view of the above, ground of appeal raised by Revenue is rejected and that of assessee is partly allowed. Disallowance u/s 14A - determination of amount of expenditure in relation to income not includible in the total income as referred under Rule-8D read with section 14A of the Act - Held that:- There is no exempt income during the year, we are of the view that ld. CIT(A) was not justified in partly allowing this addition made by Assessing Officer and set aside the orders of lower authorities and allow this ground of assessee by restricting the disallowance of ₹ 2,87,511/- u/s 14A of the Act which has been accepted by the assessee in its return of income.
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