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2015 (7) TMI 870 - AT - Income TaxDisallowance under Section 14A - Held that:- It is an undisputed fact that for the year under consideration the method prescribed under Rule 8D for working the disallowance u/s. 14A would not be applicable in view of the decision of Hon’ble Bombay High Court in the case of Godrej & Boyce [2010 (8) TMI 77 - BOMBAY HIGH COURT ] wherein held that the method prescribed under Rule 8D would be applicable to A.Y. 08-09 and subsequent assessment years. We further find that the coordinate Bench of Tribunal in Assessee’s own case for A.Y. 06-07 had held that Rule 8D is applicable only with effect from A.Y. 08-09 and therefore disallowance u/s. 14A cannot be made as per the formula given in Rule 8D. With respect to working out the disallowance whereby A.O considered the entire depreciation, we find that ld. CIT(A) has noted that depreciation for factory building and other direct equipments and machines are not related to investments and earning of exempt income and therefore the depreciation cannot be considered for making proportionate disallowance. Before us, Revenue has not placed any material on record to demonstrate as to how the aforesaid finding of ld. CIT(A) is wrong. We further find that the Assessee had suo motu worked out the disallowance u/s. 14A at ₹ 16,30,762/- and in the aforesaid working of Assessee also no mistake has been pointed out by the Revenue - Decided in favour of assessee. Disallowance of employees contribution to ESIC - CIT(A) deleted disallowance - Held that:- In the present case, it is an undisputed fact that the employees contribution of ESIC was paid after the due date prescribed under ESI Act. We find that the issue of delayed payment of ESIC contribution has now decided in favour of the Revenue by the decision of Hon’ble Gujarat High Court in the case of GSRTC [2014 (1) TMI 502 - GUJARAT HIGH COURT]. Thus in the absence of any contrary binding decision brought on record by ld. A.R, we are of the view that A.O was justified in treating the delayed deposit of Employees contribution of ESIC as income of the Assessee and accordingly uphold the order of A.O on this ground. - Decided against assessee. Addition by income from investment in Free Trade Zone - CIT(A) deleted addition - Held that:- CIT(A) while deleting the addition has followed the decision of Tribunal for A.Y. 06-07 in Assessee’s own case. Before us, Revenue has not pointed out any distinguishing feature in the facts of the case for the year under consideration as compared to that of A.Y. 06-07 which was relied by ld. CIT(A) nor has placed any material on record to demonstrate that the aforesaid decision of Co-ordinate Bench of Tribunal for A.Y. 06-07 in Assessee’s own case has been overturned by Hon’ble High Court. In view of the aforesaid facts, we therefore find no reason to interfere with the order of ld. CIT(A) and thus the ground of Revenue is dismissed. - Decided against revenue.
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