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2023 (5) TMI 577 - AT - Income TaxDisallowance of depreciation - assessee company has made investment in windmill - HELD THAT:- Tribunal has decided the identical issue in assessee’s own case in AY 2011-12 [2023 (5) TMI 507 - ITAT DELHI] confirm the order of ld. CIT (A) regarding deletion of disallowance of depreciation on investment made on wind mills. Short deduction of TDS - payment for the services provided in the nature of technical and professional services liable for deduction u/s 194J @ 10% OR payment for work as per contract within the section 194C @ 2% - CIT (A) held that AO was not justified and the section does not cover short deduction, thus deleted the addition - HELD THAT:- CIT (A) has taken correct decision which is supported by the case laws - Hence, this deletion of disallowance by the ld. CIT (A) is held to be correct. Disallowance u/s 14A - AO noted that assessee had computed some disallowance by some internal method of its own - HELD THAT:- We accept the proposition that assessee’s own fund are more than the investment made, hence no disallowance should be made for interest. This aspect may be verified by the AO. Another plea of the assessee is that only dividend yielding investments should be considered for computing amount of disallowance under Rule 8D (iii). We agree with this proposition also as it has the mandate of ACB INDIA LIMITED (FORMERLY M/S ARYAN COAL BENEFICATIONS (P) LTD. [2015 (4) TMI 224 - DELHI HIGH COURT] and case of Vireet Investment (P) Ltd. [2017 (6) TMI 1124 - ITAT DELHI]. Addition of foreign exchange loss - HELD THAT:- As we agree with the submissions of assessee that the decision of Woodward Governor India (P) Ltd. [2009 (4) TMI 4 - SUPREME COURT] is applicable. Facts highlighted by the ld. Counsel of the assessee also show that Woodward Governor India (P) Ltd. (supra) extensively discussed the judgment of Indian Molasses Co. P. Ltd. [1959 (5) TMI 5 - SUPREME COURT] and duly distinguished the same. Another factor in favour of the assessee is that during AYs 2017-18 & 2018-19, assessee earned income on reinstatement of ECB and the same was duly offered to tax and the same was accepted by the assessing officer during the assessment proceedings. So, when the Revenue is accepting the gains, the same treatment should be given to the loss and we are convinced by the submissions of the ld. Counsel for the assessee. Hence, we set aside the orders of the authorities below and delete the addition.
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