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2018 (10) TMI 276 - AT - Income TaxClaim of deduction u/s 35DD or alternatively u/s 32 - acquiring commercial rights - AO corrected the mistake u/s 154 by disallowing the deduction u/s 35DD - Held that:- Assessee company being an Indian company can only make a claim under section 35DD of the Act. The Income Tax Act, 1961 has defined what is an Indian company, as per section 2(26), Indian company means a company formed and registered under the companies Act 1956. The assessee is not an Indian Company and not registered under the Companies Act, 1956 it is only a Cooperative Bank, therefore, primfa-facie assessee is not eligible for claim of expenditure under section 35DD of the Act. The Assessing Officer by allowing claim of the assessee under section 35DD has committed a mistake apparent on record. AO has applied inapplicable provisions to the assessee’s case i.e. 35DD allowed the claim made by the assessee on face of it, there is a mistake apparent on record. Therefore, same can be rectified under section 154. CIT(A) by considering the entire facts and circumstances of the case, confirmed the rectification order passed by the Assessing Officer by holding that the order passed by AO is within the scope of section 154. CIT(A) correctly confirmed the order of the AO. Allowance of brought forward losses and unabsorbed depreciation - Held that:- The assessee has not filed any material to substantiate that the losses /unabsorbed depreciation of the amalgamation company ascertained as per provisions of section 72AB of the Act. Therefore, we find that the ld. CIT(A) rightly confirmed the order of the Assessing Officer by observing that the entitlement of allowance of such losses in the hands of the said bank (amalgamated bank) or its eligibility to be carried forward under the provisions of section 72 was not proved. Therefore, we find that the ld. CIT(A) rightly considered the issue and confirmed the order of the Assessing Officer. Liability undertaken by the assessee by paying over and above the asset value has to be considered as payment for acquiring commercial rights - Held that:- We find that the assessee has not paid any consideration to acquire the Palakollu Bank, the assessee has not shown any depreciation schedule in the amounts towards goodwill /commercial rights. Therefore, it cannot be considered that the assessee has acquired goodwill/commercial rights. Therefore, we find no infirmity in the order passed by the ld. CIT(A).- Decided against the assessee
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