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2016 (7) TMI 250 - AT - Income TaxDisallowance of 14A - Held that:- The provisions of Rule 8D is mandatory for computing the disallowance during the year under consideration. Therefore, the working made by the assessee has also to be taken into consideration by the Assessing Officer. Since the CIT(A) directed the Assessing Officer to verify the working made by the assessee, this Tribunal do not find any reason to interfere with the order of the lower authority. However, it is made clear that the Assessing Officer shall verify the working made by the assessee and if the working is made as per Rule 8D, the Assessing Officer may follow the same. If for any reason, the Assessing Officer came to know that the working made by the assessee is not in accordance with Rule 8D, then it is open to the Assessing Officer to recompute the disallowance/expenditure and add the same to the total income of the assessee. With the above observation, the order of the CIT(A) is confirmed. Addition on account of unexpired value of AMC - Held that:- This Tribunal in assessee’s own case for assessment year 2005-06 found that the contention of the assessee that it could not recognize revenue for the unexpired period of AMC is on strong footing. This Tribunal further found that the unexpired period AMC could be considered only in the subsequent year and not in the relevant previous year. Accordingly, an identical order of the CIT(A) was confirmed by this Tribunal. As rightly submitted by the ld. Counsel for the assessee, the CIT(A) has reproduced the observation made by this Tribunal and allowed the claim of the assessee. Since the CIT(A) followed the order of this Tribunal, we find no reason to interfere with the order of the CIT(A). As rightly submitted by the ld. Counsel for the assessee a mere pendency of appeal before the High Court against the order of this Tribunal cannot be a reason to take a different view. It is nobody’s case that the order of this Tribunal is stayed by the High Court. In those circumstances, this Tribunal do not find any reason to interfere with the order of this CIT(A) and accordingly the same is confirmed. Entitlement to additional depreciation - AO allowed 10% additional depreciation in the earlier assessment year in respect of the machinery installed and used for less than 180 days - assessee claimed the balance 10% additional depreciation during the year under consideration - Held that:- We find that the Karnataka High Court in the case of M/s Rittal India Pvt. Ltd (2015 (1) TMI 1248 - KARNATAKA HIGH COURT) found that the assessee is entitled for the balance 10% additional depreciation in the subsequent year. Accordingly, the orders of the lower authorities are set aside and the Assessing Officer is directed to allow the remaining 10% additional depreciation during the year under consideration. Accordingly, the orders of the lower authorities are set aside and the Assessing Officer is directed to allow the remaining 10% additional depreciation during the year under consideration.
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