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2010 (10) TMI 591 - HC - Income TaxDeduction - Sales tax - Section 43B of the Act, as the initially enacted, did not allow such deductions but this was changed with insertion of a proviso that allowed such deduction - whether the proviso was with retrospective effect or not - The Supreme Court in Allied Motors P. Ltd. v. CIT has held that the proviso to section 43B is retrospective and it came into operation from the date the section was operative - The Tribunal as well as the Commissioner of Income-tax (Appeals) did not commit any illegality in deleting the addition made by the Assessing Officer - Hence, the question is answered in the affirmative in favour of the assessee and against the Department. Depreciation - The Assessing Officer by his order dated February 18, 1986 had given depreciation of 15 per cent. after deducting subsidy amount from the cost of the generator - Enhanced to 20 per cent. by the Commissioner of Income-tax (Appeals) and confirmed by the Tribunal. The generator is not mentioned in Appendix 1 relating to table of rates and as such award of depreciation at 20 per cent. was incorrect and is on the higher side.
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