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2021 (1) TMI 641 - ITAT CHENNAIDepreciation @15% on Bolero Van - claim by the Appellant that it should be totally allowed as an expenditure - Whether CIT-A failed to note that since the vehicle is being used for research and development its entire cost is entitled for 100% deduction u/s.35(1)(iv) - HELD THAT:- Respectfully following the above decision in the case of CIT v. Smith Kline & French (India) Ltd. [1989 (2) TMI 406 - KARNATAKA HIGH COURT] the claim of 100% depreciation under section 35(1)(iv) of the Act stands allowed. Disallowance being the loss on silver futures - assessee has not provided the supporting documents in proof of loss on commodities trading in silver futures - HELD THAT:- Loss due to foreign exchange fluctuation in foreign currency transactions in derivatives has to be considered on the last date of accounting year and it is deductible under section 37(1) of the Act. Accordingly, we set aside the orders of authorities below and direct the Assessing Officer to allow the loss claimed by the assessee. Disallowance u/s 14A of the Act r.w. Rule 8D - assessee made non-trade investments - HELD THAT:- AO has not stated any exempted income having earned by the assessee in the assessment year under consideration. The ld. Counsel for the assessee has also not filed any details with regard to the quantum of exempt income earned by the assessee. Accordingly, we direct the Assessing Officer to verify as to whether the assessee has earned any exempt income or not and in case, if no exempt income is found, then the Assessing Officer is directed to delete the addition made under section 14A of the Act in view of various decisions including the decision in the case of CIT v. Chettinad Logistics (P) Ltd.[2018 (7) TMI 567 - SC ORDER]. Thus, the ground raised by the assessee is allowed for statistical purposes.
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