Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (6) TMI 415 - ITAT AHMEDABADDisallowance of deduction u/s 80P(2)(d) - Held that:- AO has not examined availability of the funds with an analytical process. Rather, he made reference to the gross-figure of various years. He has to identify the availability of funds in this year. The assessee has specifically submitted the details, exhibiting nexus between the availability of funds vis-ŕ-vis its investment. It has demonstrated that interest free funds were more than the investment, and therefore, no disallowance could be made with help of section 14A out of deduction income and interest income earned by it for claiming dividend income under section 80P(2)(d). Respectfully following the order of the ITAT, which has been upheld by the Hon’ble High Court in the assessment year 2009-10, we do not find any merit in this ground of appeal. Disallowance of additional depreciation - Held that:- A perusal of the order of the ld.CIT(A) would indicate that there is no distinction between the expression “plant” for allowing normal depreciation vis-ŕ-vis additional depreciation on that item. AO has created an artificial distinction on that ground. After going through the order of the CIT(A) we are satisfied that the ld.CIT(A) has examined the issue with all possible angle, and thereafter held that depreciation is admissible to the assessee. Therefore, we do not find any merit in this ground of appeal Additional depreciation on account of non-user of the machinery over a period of 180 days - Held that:- Assessee had earned the benefit as soon as he had purchased the new plant and machinery in full but it is restricted to 50% in that particular year on account of period of usages. Such restrictions cannot divest the statutory right. Law does not prohibit that balance 50% will not be allowed in succeeding year. The extra depreciation allowable u/s 32(1) (iia) in 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 plant machinery. We set aside the orders of the authorities below and direct to extend the benefit.
|