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2021 (5) TMI 1041 - Income Tax
Disallowance u/s 14A r.w.r. 8D - expenditure incurred by the assessee in relation to the income which does not form part of the total income - HELD THAT:- As respectfully following the decision of the coordinate Bench rendered in assessee’s own case for the assessment year 2010-11 [2019 (7) TMI 1601 - ITAT CHANDIGARH] we send this issue back to the AO for ascertaining as to whether the working submitted by the assessee is in accordance with the direction given by the coordinate Bench in assessee’s own case for the assessment year 2010-11 and in case it is found correct, to restrict the disallowance to the computation made by the assessee. Further we find merit in the alternative plea of the Ld. Counsel that the disallowance u/s 14A read with Rule 8D (2) cannot exceed the exempt income earned by the assessee.
As relying on JOINT INVESTMENTS PVT LTD case [2015 (3) TMI 155 - DELHI HIGH COURT]disallowance u/s 14A read with Rule 8D cannot exceed the exempt income. Hence, we further direct the AO to restrict the disallowance to the exempt income of the assessee in case the disallowance exceeds the exempt income while computing the same as per direction of the coordinate Bench given in assessee’s case for the assessment year 2010-11 discussed above. We therefore do not find any merit in the first ground of appeal of the revenue.
Claim filled during assessment proceedings - Additional depreciation during the assessment proceedings - As per DR since the assessee had not claimed carry forward of additional depreciation in its return of income, there is no provision under the Income Tax Act to make amendment in the return of income at the assessment stage without revising the return - HELD THAT:- As in the case of Budhewal Cooperative Sugar Mills Ltd. [2009 (5) TMI 63 - PUNJAB AND HARYANA HIGH COURT] following the ratio laid down by the Hon’ble Jurisdictional High Court in the case of CIT vs Ramco International [2008 (12) TMI 413 - PUNJAB AND HARYANA HIGH COURT] allowed the identical claim of the assessee made on the basis of a letter filed after the last date on which the revised return could have been filed u/s 139 (5) and not filing revised return. - Decided against revenue.
Non application of Rule 8D for the purpose of computing income u/s 115JB - HELD THAT:- The Special Bench of the ITAT Delhi has categorically held in the case of CIT Vs Vireet Investment Pvt Ltd. [2017 (6) TMI 1124 - ITAT DELHI] that Rule 8D cannot be applied while computing book profit u/s 115JB - Since, the findings of the Ld. CIT(A) are in accordance with the decision there is no merit in this ground of appeal of the Revenue. Hence, in view of the decisions referred above, we uphold the findings of the Ld. CIT(A), we dismiss this ground of appeal of the Revenue.
Nature of receipts - Carbon Credit Receipts - revenue or capital - HELD THAT:- We notice that the Coordinate Bench has already decided the identical issue in favour of the assessee in assessee’s own case for the AY 2010-11 [2019 (7) TMI 1601 - ITAT CHANDIGARH] by following the decision of the coordinate Bench in Kotla Hydro Power Pvt Ltd. [2015 (4) TMI 1346 - ITAT CHANDIGARH]treating the Carbon Credit Receipts as capital in nature. - Decided against revenue.