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2017 (8) TMI 1368 - AT - Income TaxExpenses relatable to exempt income by invoking the provisions of section 14A r.w.r. 8D - Held that:- The investment made by the assessee would be out of the interest free funds available with assessee in the shape of reserve and surplus which is more than the investment in shares and growth of funds from where the assessee has earned this dividend income. We find that this issue is covered by the decision of the Hon’ble Bombay High Court in the case of HDFC Bank Ltd. (2014 (8) TMI 119 - BOMBAY HIGH COURT) and hence, this issue is decided in favour of assessee. As regards, the disallowance of 0.5% of the average value of investment the assessee requested for setting aside the issue to the file of the AO for verification and restricted this disallowance to the extent of investment made in equity from where dividend income is earned and excluded the investment wherein dividend is earned on growth of funds. On this the learned Sr. DR has not objected. We find the plea of the assessee is reasonable and we restore this issue back to the file of the AO Disallowing the depreciation on capital equipments i.e. Wind Energy Generators and Accessories - Held that:- assessee purchased 2 (two) Enercon make 800 KW type E-48 wind energy converters and accessories to be installed at site. The installation work was to be completed by 31-12-2006 but there was delay of 15 months and actually, installation was done by Ms Enercon (India) Ltd. in March 2008. The assessee received liquidated damages of ₹ 20,59,600/- during the period FY 2008-09 relevant to AY 2009-10. The assessee credited this amount to its profit and loss account and disclosed the same as income. The assessee never claimed any depreciation and never made any addition to the value of this machinery. The assessee filed complete details in respect to this machinery before us and we could not find that the assessee has claimed any depreciation on the same. Accordingly, we are of the view that the lower authorities erred in making addition on wrong premises.- Decided in favour of assessee.
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