Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (2) TMI 1905 - AT - Income TaxDisallowance of depreciation on R&D equipments - @ 10% OR 25% - HELD THAT:- Assessee has been fair enough to admit that this disallowance of depreciation has resulted into income of the assessee’s unit which otherwise is exempt u/s 80IC of the Act. Hence the above disallowance of depreciation is ‘tax neutral’ to the assessee. In view of the above, without going into merits of the case, this ground is dismissed being ‘tax neutral’ and rendered academic in nature. Deduction u/s 80IC - @ 30% OR 100% on account of substantial expansion undertaken in earlier years - HELD THAT:- A perusal of the order of the Assessing officer reveals that the Assessing officer has not disputed that the assessee unit has carried out substantial expansion as provided under clause (b) of sub section (2) read with clause (ix) of sub section (7) of section 80IC of the Act. Almost similar view has also been taken by the Hon'ble Himachal Pradesh High Court in the case of ‘M/s Stovekraft India [2017 (12) TMI 69 - HIMACHAL PRADESH HIGH COURT] - The impugned order of the Ld. CIT(A) on this issue is set aside, and the AO is directed to grant to the assessees deduction at the rate of hundred percent of its eligible profits, as per the ruling of the jurisdictional High Court in this regard in the case of ‘M/s Stovekraft India vs. Commissioner of Income Tax’ (supra). In view of the above, ground No.2 of the appeals is allowed. Disallowance of ‘interest income’ and ‘other income’ out of deduction claimed u/s 80IC - HELD THAT:- Assessee could not demonstrate with convincing evidence on the file as to how the interest income on the FDRs and the other income relates to manufacturing activity of the assessee. In view of this, we do not find any infirmity in the order of the lower authorities in not allowing deduction u/s 80IC on the interest income and other income. This issue is decided against the assessee.
|