2015 (2) TMI 628 - AT - Income Tax

Disallowance u/s 14A r.w. Rule 8D - CIT(A) has confirmed the disallowance - Held that:- The AO has not brought on record any fact or material to show that any expenditure has been incurred on the activity which has resulted into both taxable and non taxable income. Therefore, in our view when the assessee has prima facie brought out a case that no expenditure has been incurred for earning the income which does not form part of the total income then in the absence of any finding that expenditure has been incurred for earning the exempt income the provisions of section 14A cannot be applied. Accordingly we delete the addition/disallowance made by AO u/s 14A r.w. Rule 8D. - Decided in favour of assessee.

Addition u/s 14A to the Book Profit u/s 115JB - Held that:- In view of finding in respect of disallowance u/s 14A in ground no. 1, the ground no. 2 of the assessee’s appeal is allowed being consequential. Accordingly delete the addition made while computing the book profit in respect of the disallowance made u/s 14A.- Decided in favour of assessee.

Depreciation - CIT(A)directing AO to allow the depreciation after working out the WDV of the assets for earlier years - Held that:- Depreciation has to be allowed on written down value (WDV) after reducing the actual depreciation allowed in the earlier years. In view of the earlier years order of this Tribunal in assessment year 2007-08 as well as in assessment year 2008-09, we do not find any substance in the appeal of the revenue. - Decided against revenue.