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2018 (3) TMI 1027 - AT - Income TaxDisallowance of depreciation on assets acquired from M/s Sahney Krikwood and leased back - Held that:- As long as the asset is utilized for the purpose of business of the assessee, the requirement of Section 32 will stand satisfied, notwithstanding non-usage of the asset itself by the assessee. On a combined reading of Section 2(13) and Section 2(24) the income derived from leasing of the trucks would be business income, or income derived in the course of business, and has been so assessed. Hence, it fulfills the second requirement of Section 32 viz. that the asset must be used in the course of business. See ICDS Ltd. Vs. CIT [2013 (1) TMI 344 - SUPREME COURT ] Interest u/s 220 (2)- Held that:- Interest u/s 220 (20) should be calculated from the date of fresh assessment when the assessment is de novo set aside and the interest could not be calculated from the date of original assessment order, which is very clear from the CBDT Circular No. 334 dated 3/04/1982. Thus we direct the AO to recomputed interest accordingly. Hence, we allow this ground of appeal of the assessee. Disallowance of provision of leave encashment - Held that:- CIT-A has decided the issue by following the law laid down by the Hon’ble Supreme Court in Bharat Earth Movers vs. Commissioner of Income Tax [2000 (8) TMI 4 - SUPREME Court] wherein held provision for meeting the liability for encashment of earned leave by the employee is an admissible deduction
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