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2014 (1) TMI 1695 - AT - Income TaxDisallowance u/s 14A r.w.r 8D - Held that:- CIT(A) has rightly held that the assessee has not utilized the borrowed money to investment in mutual funds, accordingly, the addition of ₹ 29,198/- made by the Assessing Officer by applying Rule 8D r.w.s. 14A was held not justified. This reasoned finding of CIT(A) need no interference from our side whereby CIT(A) has granted relief to the assessee on this account. - Decided in favour of assessee. Treatment of income on account of sales tax deferral claimed as capital in nature - CIT(A) deleted the addition - Held that:- The reasoned findings of the CIT(A) need no interference from our side who has deleted the impugned addition by holding that the same is not the income of the assessee and mere so because was erroneously shown in its return of income by the assessee, therefore, the same was rightly deleted by the CIT(A) to held as it is settled law that merely because the assessee under wrong understanding of law offers amount to tax, the same will not be a reason, to tax the said amount unless it is lawful to tax the same. The impugned amount is not an income of the assessee and was erroneously shown by it in the return of income. We uphold the same. - Decided in favour of assessee. Disallowance of depreciation - reducing the amount of special capital incentive received by the assessee from the Govt. of Maharashtra - CIT(A) delewted the addition - Held that:- CIT(A) granted the relief to the assessee by observing that the subsidy was not given for any specific purpose of meeting any portion of cost of the assets, therefore, could not be reduced from W.D.V. Similar view was taken by ITAT in assessee’s own case for A.Y. 2002-03 and 2003-04. Accordingly, the CIT(A) was justified in deleting the addition made on account of depreciation. The same needs no interference from our side. We uphold the same. - Decided in favour of assessee.
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