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2015 (8) TMI 407 - AT - Income TaxDisallowance of balance 50% additional depreciation u/s. 32(1)(ii)(a) - new plant and machinery purchased and put to use for less than 180 days in the immediately preceding year - Held that:- The assessee is entitled for additional depreciation u/s. 32(1)(iia) of the Act in this assessment year as relying on case of Birla Corporation Limited Vs. DCIT [2014 (12) TMI 436 - ITAT KOLKATA] wherein held he assessee is eligible for additional depreciation in case the new machinery and plant was acquired and installed after 31-03-2005 - benefits conferred on the assessee by way of incentive provision cannot be taken away by adopting an implied meaning to second proviso to section 32(1)(ii) - since the second proviso to section 32(1)(ii) does not expressly prohibit the allowance of the balance 50% depreciation in the subsequent year, second proviso to section 32(1)(ii) shall not be interpreted to mean that it impliedly restrict the additional depreciation to be allowed in the subsequent AY - the assessee is entitled for 50% additional depreciation, because in the year in which the machinery was first put to use the assessee claimed only 50% of additional depreciation for the reason that the same was put to use for less than 180 days, in this assessment year for the balance of depreciation - Decided in favour of assessee. Disallowing 1% of dividend income in a mechanical manner u/s 14A - Held that:- The Hon’ble ITAT ‘C’ Bench, Kolkata in the case of assessee for assessment year 2006-07 [2011 (4) TMI 1283 - ITAT KOLKATA] in view of facts of this case and the principle laid down by Hon’ble Bombay High Court in the case of Godrej Boycee Mfg. Co. Ltd. (2010 (8) TMI 77 - BOMBAY HIGH COURT), that Rule 8D is applicable for and from assessment year 2008-09 and prior to that the Assessing Officer can make estimate in the given facts and circumstances. Hence, we restrict the disallowance to 1% of dividend income and direct the Assessing Officer to calculate the expenditure on that basis. - Decided partly in favour of assessee.
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