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2016 (12) TMI 1749 - AT - Income TaxDisallowance u/s 14A - Held that:- From the Schedule of investments we noticed that entire amount of investments made in equity shares (subsidiary companies and other companies) have been brought forward from earlier year, meaning thereby, no movement in these investment found was during the year under consideration. Other investments made by the assessee consisted of investments made in various schemes of different mutual funds only. According to Ld A.R, one of the staffs was assigned for this job and hence a portion of his salary has been considered for making disallowance u/s 14A - We notice that the assessee has not made disallowance out of other administrative expenses, even though there was fresh investments in Mutual funds and further there has been activities of purchase and sale of mutual fund units. Considering the activity involved in the investment portfolio of the assessee, we are of the view that a portion of other administrative expenses should also be allocated towards the investment activities. We are of the view that the disallowance u/s 14A may be reasonably estimated at ₹ 50,000/- and the same would take care of other administrative expenses and would meet the requirements of sec. 14A. We set aside the order passed by the learned CIT(A) on this issue and direct the Assessing Officer to restrict the addition to ₹ 50,000/- (including the amount disallowed by the assessee). Higher rate of depreciation on moulds - @ 30% OR 15% - Held that:- AO to allow depreciation on moulds at 30% as claimed b it. Since there is no change in the facts of the case on this issue, it is held that the appellant is entitled to claim depreciation on moulds @30%. AO is, therefore, directed to allow depreciation on moulds @30% as claimed by the appellant. Ground No 2 of the present appeal is accordingly allowed.
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