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2016 (5) TMI 1322 - ITAT KOLKATAEntitlement to claim the left over portion of additional depreciation being the carry forward figure from the previous year u/s. 32(1)(iia) - Held that:- As decided in assessee's own case [2015 (5) TMI 647 - ITAT KOLKATA] issue on proposition of law regarding allowance of remaining additional depreciation in the next assessment year u/s. 32(1)(iia) of the Act was covered in favour of assessee and against revenue by the decision of in the case of Birla Corporation Ltd. Vs. DCIT [2014 (12) TMI 436 - ITAT KOLKATA ] wherein it was held that extra depreciation allowable u/s. 32(1)(iia) is an extra incentive which has been earned and calculated in the year of acquisition but restricted for that year to 50% on account of usage. The so earned incentive must be made available in the subsequent year. The overall deduction of depreciation u/s. 32 shall definitely not exceed the total cost of machinery and plant. Thus, assessee is entitled for the balance 50% additional depreciation in view of sec. 32(1)(iia) of the Act in the next assessment year for remaining unutilized additional depreciation.- Decided in favour of assessee. Disallowance u/s 14A - Held that:- The assessee has got sufficient own funds which are several times more than the investments made by the assessee. Hence, it can be safely concluded that borrowed funds have not been utilized for the purpose of making investments. Accordingly, we hold that the provisions of Rule 8D(2)(ii) of the Rules could not be invoked in the facts and circumstances of the case. - Decided in favour of assessee. Whether disallowance u/s. 14A could be made to the book profit computed u/s. 115JB - Held that:- In this regard we have already held that no disallowance u/s. 14A of the Act could be made in the facts and circumstances of the case. Accordingly, ground raised by the assessee are allowed.
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