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2016 (5) TMI 1499 - AT - Income TaxDisallowance u/s 14A - expenses incurred to earn the exempt income - HELD THAT:- The balance sheet of both the years are on the file as annexure -1 and 2 which speaks that the assessee was having sufficient surplus amount in comparison to the investment made in mutual fund to earn the exempt income. Therefore, the said circumstances and in view of the above mentioned law settled in case of Bombay Commissioner of Income Tax Vs. Reliance Utilities and Power Ltd. [2009 (1) TMI 4 - BOMBAY HIGH COURT] . We are of the view that the claim of the assessee is required to be examined a fresh in accordance with law. Therefore the finding of the learned CIT(A) on this account has been ordered to be set aside and learned Assessing Officer is hereby directed to decided the matter afresh in accordance with law. This issue is decided in favour of the Assessee against the Revenue Depreciation on capital asset transferred by a holding company to its subsidiary company - exemption under section 47(iv) applicability of provisions of explanation 6 to sub-section (1) of section 43 - plant and machinery is transferred from the holding company to subsidiary company - HELD THAT:- It is clear that the finding of the CIT(A) is based upon the observations made in Essar Oil Limited Vs. Deputy Commissioner of Income Tax, Special Range [2007 (1) TMI 278 - ITAT MUMBAI] wherein held that A.O. is directed to take the cost of acquisition of such assets as have been acquired at the cost at which they have been acquired means the actual consideration paid by the assessee company and accordingly allow the depreciation claimed by the assessee. Considering the facts of the case before us we agree that the case of the assessee is duly covered by the case of Essar Oil Ltd. (Supra). Therefore, we do not find any infirmity and illegality in the finding given by the learned CIT(A), hence we dismissed the appeal filed by the revenue.
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