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2013 (11) TMI 1365 - AT - Income TaxAllowance of Lease rent paid – Sale and Lease back transaction - Revenue contended that the series of transactions were entered into between the group concerns with a view to avoid tax liability of the group as a whole - Held that:- Bank of Madura who purchased windmill 500 KW is not part of the assessee group - Secondly, it is not for the Income-tax authorities to determine as to in what manner the assessee should have conducted his business affairs. It is not in dispute that the transactions were given effect to by the parties - There is considerable force in the contention of the assessee that while on the one hand the assessee's claim of deduction of lease rentals has been disallowed, the income earned by the assessee on sale of power to Andhra Pradesh Government has been assessed without demur – Lease rent allowable as deduction – Decided against the Revenue. Allowance of unabsorbed depreciation of earlier years – Applicability of provision of section 32(2) of the Income Tax Act – Held that:- Assessee's unabsorbed depreciation for the assessment year 2001-02 and 2002-03 and current year's depreciation, as held by the CIT (A) are more than the capital gains and dividend being brought to tax separately by AO. In these circumstances both on facts as well as on law, assessee's contentions are allowable – Decided against the Revenue. Claim of deduction u/s 80HHC, while computing the book profits under section 115JB – Held that:- Following the decision in the case of Ajanta Pharma Ltd vs. CIT [2010 (9) TMI 8 - SUPREME COURT], deduction u/s 80HHC is allowed for computation of book profit – Decided against the Revenue. Taking of turnover of the taxable division only on "standalone" basis for computation of deduction u/s 80HHC - assessee company had several division viz. Textile Division, Lease and Hire Purchase Division; Power Generation Division, Foreign Exchange Division & Financial and Other Services Division. These activities were distinct and separate from each other - Assessee had maintained separate books of account in respect of each division and separate P & L A/s. and separate balance sheet were prepared in respect of each division – Held that:- Assessing Officer had simply adopted the figures appearing in the consolidated account and ignored the separate accounts of Textile Division - In the case of an assessee carrying on more than one business it was only the business of which export was a part was required to be taken into consideration and not other business which had nothing to do with the export business – Decided against the Revenue.
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