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2018 (9) TMI 879 - HC - Income TaxMismatch in the accounts of the assessee concerning its interest income - Undisclosed interest income as per 26AS data which was not included in total interest offered by the assessee for taxation - Held that:- Commissioner of Income Tax (Appeals) however, noted that the assessee had offered larger interest income which would subsume the error component of interest income. The Tribunal confirmed this view. No question of law arises. Depreciation on asset on which the assessee had purchased out of exempted income u/s.35AC - Held that:- Logic adopted in case of Rajasthan and Gujarati Charitable Foundation (2017 (12) TMI 1067 - SUPREME COURT) would substantially apply. In terms of section 35AC of the Act, the assessee who incurs expenditure by way of payment directly on eligible project or a scheme, would enjoy exemption of such expenditure during the relevant year. This exemption however would not cast any shadow on the assessee claiming any depreciation under section 32 which is allowable in respect of any building, machinery, plant or furniture being tangible assets owned wholly or partly by the assessee and for the purpose of business or profession at the specified rates. The requirements thus, are of the assessee owning wholly or partly any building, machinery, plant or furniture being tangible assets and having used them for the purpose of business or profession. Indisputably, these conditions are satisfied in the present case.
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