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2015 (11) TMI 1752 - AT - Income TaxDeduction of interest expenditure u/s 36(1)(iii) - AO observed that the interest to the extent of interest on investment in land was not for business purpose - Further disallowance of Interest amount pertaining to investment in capital work-in-progress - Disallowance u/s 14A - expenditure related to exempt income - Held that:- Following the decision for the earlier years, CIT(A) was right in deleting the additions - Decided in favor of assessee. Disallowance u/s 14A - Held that:- the expenditure which is directly relatable to earning the taxable income has to be excluded. The wording of Rule 8D (ii) of the Income Tax Rules is quite clear as it has been postulated in this provision that the interest relatable to investment in tax free funds is to be computed. Under sub-section (2) of section 14A of the Act, the Assessing Officer is required to examine the accounts of the assessee and only when he is not satisfied with the correctness of the claim of the assessee in respect of expenditure in relation to exempt income, he can determine the amount of expenditure which should be disallowed in accordance with the method prescribed, i.e. Rule 8D of the Income Tax Rules. Higher rate of Depreciation on power evacuation facility (PEF) and transmission lines used with wind turbine generator - Held that:- power evacuation infrastructure facility is part and parcel of the windmill though partly owned by the assessee on which the assessee is entitled to the claim of depreciation at the same rate on which depreciation was allowed on the windmill. - Decided in favor of assessee.
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