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2020 (6) TMI 42 - AT - Income TaxSetting off of unabsorbed depreciation against Business Income and Income from Other Sources for the current year before setting off of brought forward business losses of previous year - HELD THAT:- A bare perusal of sub-section (2) of section 72 would show that before giving effect to the provisions of section 32(2) dealing with carry forward of unabsorbed depreciation, precedence is given to set off of brought forward business losses against income under the head Profits and Gains from Business or Profession. Thus, we find merit in the contentions of the assessee. AO is directed to first set off brought forward business losses of previous years before set off of unabsorbed depreciation of the earlier year. TP adjustment - Addition on account of advertising, marketing and sales promotion expenditure - HELD THAT:- As decided in own case [2019 (8) TMI 698 - ITAT MUMBAI] wherein the entire adjustment has been deleted on the ground that there is no agreement or arrangement for incurring AMP expenditure. The ld.Authorized Representative for the assessee asserted that the facts in the assessment year under appeal are identical. Disallowance of royalty expenditure - HELD THAT:- As assessee fulfilled all the prescribed conditions, he is entitled for the benefit of the same and hence, we are inclined to delete the impugned additions and allow the appeal of the assessee. See assessee's own case [2019 (8) TMI 698 - ITAT MUMBAI] Brought forward unabsorbed depreciation - AO disallowed unabsorbed depreciation on the ground that assessee could carry forward unabsorbed depreciation upto a maximum period of eight years - HELD THAT:- The authorities below have erred in not considering the judgment of Hon'ble Bombay High Court in the case of CIT vs. Hindustan Unilever Ltd. [2016 (7) TMI 1245 - BOMBAY HIGH COURT] wherein it has been held that the assessee can set off brought forward unabsorbed deprecation without any cap of years. Computation of interest u/s 234B of the Act without considering set off of credit of MAT Tax paid - HELD THAT:- Contention of the assessee is that interest under section 234B has been computed without set off of credit of MAT tax paid for assessment year 2009-10, 2010-11 and 2011-12. It is no more res-integra that interest under section 234B is to be charged after MAT credit available under section 115JAA is set off against tax payable on total income[CIT vs. Sage Metals Ltd.. [2012 (10) TMI 802 - SC ORDER]. The ground No.5 of the appeal is allowed, accordingly. Interest under section 234C on returned income - contention of the assessee is that the Assessing Officer has erred in charging interest under section 234C on assessed income - HELD THAT:- A bare perusal of the provisions of section 234C would make it clear that the interest under section 234C is to be charged on returned income and not assessed income. The Assessing Officer is directed to recompute interest under section 234C of the Act in the aforesaid manner.
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