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2015 (10) TMI 1509 - AT - Income TaxDisallowance u/s.14A r.w. Rule 8D(2)(ii) - CIT(A) deleted the addition - Held that:- Considering all the submissions of both the parties and facts and circumstances of the case and judgment of Hon’ble Bombay High Court in the case of Reliance Utilities & Power Ltd (2009 (1) TMI 4 - HIGH COURT BOMBAY ), we find that the assessee had sufficient funds in the form of Share Capital amd Reserves & Surplus so as to enable it to make tax free investments. Further the exempt income is merely to the tune of ₹ 500/-, received in the form of dividend in the investments made in earlier years. It is further noted by us that the disallowance of ₹ 2,99,801/- on account of proportionate expenses out of indirect expenses incurred by the assessee, has been accepted by the assessee. Under these facts and circumstances, we find that the order of Ld. CIT(A) in deleting the disallowance on account of interest for ₹ 7,13,542/- is justified and no interference is called for in the order of Ld. CIT(A) on this issue. - Decided in favour of assessee. Disallowance of Depreciation on Imported Car. - CIT(A) deleted the addition - Held that:- Disallowance made by the AO was not justified. It has been observed by us that AO has not anywhere mentioned that the said car was not used for the purpose of business of the Baroda 7 Rayon Co. Ltd.. assessee company. The accounts of the assesee company are audited by the statutory auditors as well as by the tax auditors. No defect has been pointed out in any audit report. The depreciation claimed on the car was on account of opening value of the WDV. The depreciation has been allowed on this car in earlier years. Thus, in our considered view the disallowance made by the AO was not justified and Ld. CIT(A) has rightly deleted the same - Decided in favour of assessee.
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