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2016 (7) TMI 1527 - AT - Income TaxDisallowance u/s 14A - applicability of provisions of Rule 8D - HELD THAT:- For the Assessment Year under consideration i.e. Assessment Year 2007-08, the provisions of Rule 8D have no application as held by the Jurisdictional High Court in the case of Godrej & Boyce Mfg. Co 2010 (8) TMI 77 - BOMBAY HIGH COURT. It was held that Rule 8D applies only prospectively. Therefore, we hold that provisions of Rule 8D have no application for Assessment Year 2007-08. However, reasonable disallowance should be made and we direct the Assessing Officer to restrict the disallowance under section 14A at 2% of the dividend income as reasonable expenses for earning exempt income. This ground of the assessee is partly allowed Deduction of disallowance of employees separation cost which was claimed u/s. 37(1) - HELD THAT:- Issue becomes academic in view of the order passed u/s. 143(3) r.w. Sec. 148 wherein the Ld. CIT(A) has given relief. Thus, this ground of the assessee is dismissed. Disallowance of depreciation claimed on actual cost of the assets as per Sec. 43(1) - Held that:- As for the Assessment Year 2008-09 we find that the Co-ordinate Bench confirmed the order of the Ld. CIT(A) in holding that the Assessing Officer to take the cost of acquisition of assets acquired by it from Tata Motors Ltd., at the cost at which they have been acquired i.e. the actual consideration paid by the assessee.
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