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2014 (3) TMI 805 - AT - Income TaxDisallowance of depreciation on investments – Held that:- Whether the method adopted by the assessee for valuation of investments for Income tax purposes was consistently followed by the assessee in the earlier years also has not been considered - the assessee has been claiming deduction only for income tax purposes (without making appropriate entries in the books of account), the assessee would be entitled to claim deduction of only the incremental amount of provision - the assessee has not furnished any details to show that the claim made by it represents only the incremental amount of provision for depreciation on investments - this aspect also requires verification at the end of the AO – thus, the order of the CIT(A) set aside and the matter remitted back to the AO for fresh adjudication – Decided in favour of Assessee. Restriction of deduction claimed u/s 36(1)(viia) of the Act – Held that:- The word(s) defined under the Act should be assigned the same meaning and hence no other meaning can be ascribed to it - when the section specifically states the amount of deduction is required to be computed at a figure not exceeding 7-1/2% of the total income, the AO was not justified in computing the amount of deduction at 7-1/2% of the income generated out of the rural advances - CIT(A) was also not justified in confirming the action of the AO – thus, the order of the CIT(A) set aside and the matter is remitted back to the AO for verification – Decided in favour of Assessee.
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