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2014 (2) TMI 462 - AT - Income TaxRate of depreciation on boiler and trucks used Held that:- The CIT(A) found that in the table of rates of depreciation the energy saving devices specifically for specialized boiler and furnaces the rate of depreciation is provided @ 80% - the CIT(A) has rightly upheld the order of AO as in depreciation Appendix, the admissible depreciation on Boiler is 80% - there was no infirmity in the order of CIT(A). Depreciation on Trucks - The decision in M/s. Bhole Baba Milk Food Industries Ltd., Versus Deputy Commissioner of Income Tax Circle 4(1), Agra. & Others [2012 (12) TMI 189 - ITAT, AGRA] followed - the benefit of 40 per cent. depreciation allowance was admissible only for vehicles used for business of hire in view of the provisions of Entry No.III(ii)E(1-A) of Part I of Appendix I to the Income-tax Rules, 1962, and since the assessee used the vehicles for its own business of transporting its goods only 30 per cent. depreciation was allowable. Disallowance of deduction u/s 80IB of the Act Duty drawback Held that:- The decision in Liberty India vs. CIT [2009 (8) TMI 63 - SUPREME COURT] followed duty drawback, rebate etc. should not be treated as adjustment (credited) to cost of purchase or manufacture of goods Decided against Assessee. Deletion made u/s 14A of the Act Held that:- The decision in Bhole Baba Milk Food Industries Ltd., Versus Dy. Commissioner of Income Tax [2012 (7) TMI 365 - ITAT, AGRA] followed - Rule 8D can be applicable only where disallowance of interest on borrowed capital warrant for expenses out of such borrowed capital with the amount relating to investment in shares and search and not ascertainable - the disallowance of interest is not warranted under the circumstances - there is no question of invoking Rule 8D of the Rules - the assessee was having sufficient own interest free fund to cover the investment made in shares thus, no disallowance can be made under section 14A of the Act there was no infirmity in the order of CIT(A) - Order of CIT(A) on the issue is confirmed Decided against Revenue.
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