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2023 (6) TMI 769 - AT - Income TaxAddition on account of community development expenses - AO disallowed the expenditure merely on the basis that the said expenditure are not incurred wholly and exclusively for the purpose of business - HELD THAT:- As it cannot be disputed that the expenditure incurred on environment health and safety, as stated above, are relevant considering the business in which the assessee is engaged, i.e. development and implementation of coal-based thermal power project. Therefore, once the expenditure has been accepted to be for the community development, and environment health & safety expenses, the same cannot be held to be not incurred wholly and exclusively for the purpose of business in the year under consideration. We find no infirmity in the impugned order passed by the learned CIT(A) on this issue. Ground raised in Revenue’s appeal is dismissed. Allowance of additional depreciation - asset put to use for less than 180 days during the earlier year - assessee has claimed balance of depreciation @10% (i.e. 50% of the applicable rate of 20% as per section 32(1)(iia)) as additions depreciation during the current year - HELD THAT:- Hon’ble Karnataka High Court Rittal India (P) Ltd. [2016 (1) TMI 81 - KARNATAKA HIGH COURT] held that if the plant and machinery eligible for additional depreciation u/s 32(1)(iia) are put to use for less than 180 days in said financial year and, therefore, only 50% of additional depreciation can be claimed in that year, balance 50% can be availed in the subsequent year. No infirmity in the impugned order passed by the learned CIT(A) on this issue. As a result, ground no.2 raised in Revenue’s appeal is dismissed.
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