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2018 (3) TMI 1661 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - no exempt income is received or receivable - Held that:- The fact that no exempt income was earned is undisputed. The Hon’ble Delhi High Court in the case of Cheminvest Ltd.[2015 (9) TMI 238 - DELHI HIGH COURT], has held that the section 14A will not apply if no exempt income is received or receivable during the relevant previous year. Thus, respectfully following the above decision, no disallowance could have been made under section 14A of the Act and accordingly, we uphold the finding of the Ld.CIT(A) in deleting the addition - Decided in favour of assessee Disallowance on account of claim of depreciation on canteen building - Held that:- Main evidence in support of the claim of putting the canteen building to use is the running expenses of ₹ 24,83,572/- paid to M/s Gupta Hospitality Services Private Limited, which is an unrelated party. The Assessing Officer has allowed the running expenses. This factual finding has not been controverted by the Ld. DR. On the issue of provision of ₹ 25 lakhs, also the Ld. CIT(A) has observed that building was already constructed in the month of February, 2010 and liability towards construction was ascertained and tax was also deducted on said payment. The Ld. DR also could not controvert this factual finding of the Ld. CIT(A) - Decided in favour of assessee Disallowance on account of excess claim of depreciation on electrical items - whether these items were in the nature of electric installation, being part of plant and machinery and eligible for depreciation at the rate of 15%? - Held that:- CIT(A) in the impugned order has re-produced the list of the electrical items on which depreciation has been claimed at the rate of 15%. It is evident from the items that those are electrical installation and in the nature of essential part of plant and machinery, required for functioning of the machinery. The Ld. DR could not controvert that those items were essential for running of the plant and machinery and thus in the nature of electrical installation. In our opinion, order of the Ld. CIT(A) on the issue in dispute is well reasoned - Decided in favour of assessee
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