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2015 (4) TMI 1179 - ITAT LUCKNOWAddition on account of depreciation of Iraqi assets - Held that:- As per the Tribunal order brought on record by Learned A.R. of the assessee, it was held by Tribunal in earlier years that the compensation received by the assessee is to be brought to the concerned block of assets and the said bock of assets is to be reduced accordingly. This finding of the Tribunal is in line with the provisions of the Act and therefore, we decline to interfere in the order of CIT(A) on this issue. Ground No. 1 is rejected. Addition on account of depreciation on temporary erections - Held that:- We find that CIT(A) has given a clear finding that the issue in dispute is squarely covered in favour of the assessee by the Tribunal order in earlier years in assessee’s own case. He has also given a finding that there is no change in the facts of the present year. Learned D.R. of the Revenue could not point out any difference in facts in the present year. As per the Tribunal decision available on record also, we find that in assessment years 2001-02 and 2002-03, the Tribunal has followed earlier Tribunal decision for assessment year 94-95 and 96-97. Hence, it is seen that this issue has consistently been decided in favour of the assessee and no difference in facts could be pointed out by Learned D.R. of the Revenue. Hence, we do not find any reason to take a contrary view. Retention money - Held that:- No difference in facts could be pointed out by Learned D.R. of the Revenue. Moreover, during the present year, the assessee has reduced an amount of ₹ 1,455.17 lacs from its income on account of retention money but the assessee has offered a larger amount of ₹ 8,039.29 lacs to tax being retention money not offered to tax in earlier years but offer to tax in present year on account of expiry of deferred liability period. Hence, it is seen that if the present year is considered in isolation, the amount offered to tax is more than the amount of income reduced from the income on account of retention money. This is also very important that at the end of the financial year 2010 – 11, the entire amount of retention money was offered to tax and considering these facts that no difference in facts could be pointed out by Learned D.R. of the Revenue, we do not find any reason to take a contrary view. Accordingly, ground No. 4 is also rejected. Addition on account of manufacturing expenses being 7.5% of the total expenditure incurred on repair to building - Held that:- We find that this issue was also decided by learned CIT(A) as per Tribunal decision in assessee’s own case in earlier years. No difference in facts could be pointed out by Learned D.R. of the Revenue on this issue also. Therefore, we do not find any reason to take a contrary view in the present year on this issue also. exemption U/s 80IA - absence of accounts and balance sheet of the assessee at the time of commencement of business, it is not possible to ascertain the investment made by the assessee initially and thus quantify the magnitude of capital introduced - Held that:- In the absence of accounts of the assessee for the initial years, it is reaffirmed that all the three Captive Power Plants (CPPs) i.e. 25 MW Plant Rewa, 25 MW Plant Bela Plant and 38.5 MW plant were initially were integral part of same unit to whom power was to be supplied and later, these CPPs were formed by splitting the existing business. The third objection was that the CPPs in question are not completely separate from that of the principal unit to which the concerned CPPs were supplying power. These objections of the Assessing Officer are to be examined and decided for allowing deduction for the first time but having allowed the deduction for the same three CPPs in assessment year 2007-08 as per assessment order passed by the Assessing Officer on 13/12/2009 u/s 143(3), the Assessing Officer cannot reject the claim of the assessee for deduction u/s 80IA in respect of same 3 CPPs in a subsequent year i.e. assessment year 2009-10 on the basis that initial capital is not known or that it is formed by splitting/reconstruction of the existing business etc. Hence, in view of the principle of consistency, we are of the considered opinion that there is no infirmity in the order of CIT(A) on this issue in view of the fact that in assessment year 2007-08, the Assessing Officer has himself allowed deduction to the assessee u/s 80IA in respect of the same 3 CPPs.
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