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2017 (5) TMI 1497 - HC - Income TaxAddition u/s 36(1)(vii) on account of provisions of bad and doubtful debts - Held that:- Bad debts clai is to be allowed. See T.R.F. Ltd. vs. CIT [2010 (2) TMI 211 - SUPREME COURT] Addition on account of foreign exchange fluctuation - Held that:- Addition made is to be deleted. See Commissioner of Income Tax vs. Woodward Governor India [2009 (4) TMI 4 - SUPREME COURT ] Addition made on account of disallowance of depreciation - effective ownership - Held that:- Tribunal correctly deleted the addition as relying upon the decision of Delhi High Court in the case of CIT vs. Bharat Aluminum Company Ltd. (2009 (10) TMI 505 - DELHI HIGH COURT) and CIT vs. Yamaha Motors India Pvt. Ltd. [2009 (8) TMI 27 - DELHI HIGH COURT] and CIT vs. Sonal Gum Industires [2009 (2) TMI 84 - GUJARAT HIGH COURT ] as held as held that though as per section 32(1), in order to get entitled to claim depreciation, asset is to be owned by the assessee and it is also be used for the purpose of business and profession but this expression when applied to block of assets and not any specific building, machinery, plant or furniture in said block of assets as individual assets loose their identity after becoming inseparable part of block of assets. Condition for eligibility of depreciation that machinery is used for the purpose of business would mean that discarded machine is used for the purpose of business in the earlier years for which depreciation is allowed. Addition made while computing book profits u/s.115 JB - Held that:- In computing the income u/s 115JA the AO while computing the income has only the power of examining whether the books of accounts certified by the auditors under the Companies Act has been maintained in accordance with schedule VI. The AO thereafter has the limited power of making increases and reduction as provided for in the explanation to the ld section. Since the so-called excess depreciation provided by the assessee is not in deviation from the accounting principles and standards laid down by the Companies Act/ICAI, this cannot be added in computing the book profit u/s 115JB. This addition to the book profit is therefore directed to be deleted. See Apollo Tyres Ltd. vs. CIT [2002 (5) TMI 5 - SUPREME Court] Assessee appeal allowed.
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