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2015 (11) TMI 1805 - AT - Income TaxDisallowance of Depreciation in respect of jetties constructed by the assessee and used for the purpose of business - HELD THAT:- As decided in own case [2012 (8) TMI 493 - ITAT, MUMBAI] we hold that the assessee is entitled to claim depreciation on the Jetty, referred above. Accordingly, we set aside the order of Ld CIT(A) on this issue and direct the AO to allow depreciation claimed by the assessee. Disallowance of lease rent - Claim allowed as relying on own case. Contribution of Stafff welfare expenses - No disallowance invoking the provisions of section 40A(9) Treatment of sales tax exemption received from the Gujarat Government as capital receipt Addition of Cenvat Credit - AO took the view that the value of cenvat credit lying unutilized at the close of the accounting period ought to have been included in the value of closing stock as per the provisions of section 145A - HELD THAT:- As decided in own case [2012 (8) TMI 493 - ITAT, MUMBAI] we hold that if the closing stock to be increased on account of unutilised MODVAT credit, the corresponding opening stock of that year is also to be increased, as the Department has not disputed the fact that the purchases have been debited exclusive of the excise duty element i.e., by adopting net method of purchases. If the value of closing stock is increased by the MODVAT, the purchases should also be increased by a similar amount. Therefore, the issue is squarely covered in favour of the assessee Eligible deduction u/s 80IA - Captive power generation plant - HELD THAT:- Assessing Officer will examine whether the submission of the assessee with respect to the rate taken is correct . If it is found that the rate charged by the suppliers is lower than the rate adopted for sale by the captive power generating units of the assessee, such rate would be taken by the AO for computing the profits of the eligible business, eligible for deduction u/s 80IA. However, if the rate charged by the suppliers is the same as the rate adopted for sale by the captive power generating units of the assessee, such rate adopted should be accepted for the purposes of working out the deduction u/s 80IA - Sec. 45 of The Electricity Act, 2003 and submitted that the restriction with regard to the charges to be collection on supply of electricity shall be applicable only to a “Distribution licensee” and the said restrictions shall not apply to the Captive power generating units.
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