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2020 (11) TMI 301 - AT - Income TaxCapital Grants & Subsidies and Consumers' Contribution - addition on the ground that the appellant should transfer 15% of the total Grants/subsidies/consumer contribution received during the year as against 11.75% offered by the appellant - HELD THAT:- Submissions of the assessee before us is that the uniform rate of 15% adopted by the CIT(A) is not justified. As per provisions of section 43(1) of the Act, the capital grant should be reduced from the cost/WDV of the relevant asset, and thereafter the depreciation is to be calculated. Thus, the capital grant receipt in respect of asset, on which depreciation is allowable at the rate different from 15% should be worked out as per the applicable rate. The DR could not point out any mistake in the above submission of the assessee, which we find is in accordance with law. Referring to decisions of Co-ordinate Benches of the ITAT in the case of the assessee itself [2019 (9) TMI 376 - ITAT AHMEDABAD] and [2015 (6) TMI 1096 - ITAT AHMEDABAD] we restore this issue to the file of Assessing Officer for re-adjudication as directed above after verification of the proportionate amount of grant relating to different assets and upon applying the actual rate of depreciation relates to those assets, therefore, this ground of appeal is allowed for statistical purposes. Correct head of income - interest income from staff loan and advances - income from other sources or business income - HELD THAT:- On perusal of the material on record, we could not find similar component of income treated as business income in the case of group concern of the assessee Gujarat Urja Vikas Nigam Ltd. Under these circumstances, we restore this issue to the file of Assessing Officer for re-adjudication denovo after verification of components of income in the group concern Gujarat Urja Vikas Nigam Ltd. which was adjudicated as business income as per the decision of the Hon'ble Gujarat High Court [2020 (3) TMI 232 - GUJARAT HIGH COURT]. In this regard, the assessee is directed to furnish the relevant material/detail in support of its claim in the light of the decision of the Hon'ble Jurisdictional High Court in the case of the group concern as supra. Accordingly, this issue is restored to the file of the Assessing Officer for deciding afresh. Disallowance of prior period expenses - As per AO assessee company has shown prior period income of ₹ 130.05 lacs after adjustment of prior period expenses - HELD THAT:- As gone through the decision in Group concern Gujarat Urja Vikas Nigam Ltd. vs. ACIT for assessment year 1988-89 [2017 (5) TMI 1718 - ITAT AHMEDABAD] wherein similar issue has been set aside to the file of Assessing Officer for adjudicating afresh according to the direction laid down by the Hon'ble Gujarat High Court in the case of Adani Enterprises Ltd. [2016 (7) TMI 1564 - GUJARAT HIGH COURT] - we restore this issue to the file of Assessing Officer for deciding de-novo after verification the facts and material as per the ratio laid down above. Appeal of the assessee is allowed for statistical purposes.
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