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2016 (8) TMI 421 - AT - Income TaxSet off unabsorbed depreciation against the deemed income under section 69, 69A, 69B and 69C - deemed income - Held that:- The issue is, therefore, covered in favour of the assessee by the order of the ITAT Chandigarh Bench in the case of M/s Liberty Plywood [2013 (1) TMI 510 - ITAT CHANDIGARH ] wherein held that the adjustment of current year or unabsorbed depreciation can be made against such deemed income - Decided against revenue Disallowance u/s 36 (1)(iii) - DR contended that no details are filed before the Assessing Officer regarding availability of the funds - Held that:- CIT(Appeals) recorded specifically that there is no finding of the Assessing Officer on fulfillment of the conditions of proviso to Section 36(1)(iii) of the Act. Term loans raised were found old and against machinery installed in earlier years which fact was not disputed by the Assessing Officer. There was no finding of the Assessing Officer to the effect that asset is for the expansion of the existing business. The assessee explained that it is constructing a building at Doraha and the place is used for storage. The Assessing Officer has nowhere held that building being constructed is for expansion of the existing business. Therefore, provisions of Section 36(1)(iii) and 43(1) would not be attracted in this case. Further, the assessee explained that it has sufficient funds available for raising the construction on which no interest has been paid. The ld. CIT(Appeals) has given a specific finding that in the absence of any finding by the Assessing Officer regarding any term loan having been raised for building construction, the ld. CIT(Appeals) was justified in deleting the addition. There is no merit in this ground of appeal of the revenue - Decided against revenue
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