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2023 (7) TMI 369 - ITAT DELHIDeduction u/s 80P(2)(d) - dividend income received from IFFCO claimed as exempt u/s 10(34) - assessee is a cooperative society engaged in the business of banking activities - AO observed that the exemption u/s 10(34) of the Act could be claimed by the assessee only when the amount has been subjected to dividend distribution tax in the hands of the payer in terms of section 115-O - HELD THAT:- We find that the issue in dispute is squarely covered by the decisions of this Tribunal in assessee’s own case in [2018 (9) TMI 1172 - ITAT DELHI] and [2022 (5) TMI 1564 - ITAT DELHI] dividend received from IFFCO and UP Cooperative Bank Ltd. are exempt u/s 80P(2)(1). Disallowance of depreciation on fixed assets as per section 32 of the Act and making the addition u/s 69 r.w.s. 115BBE - assessee has not filled the depreciation figure in the relevant column of ITR - HELD THAT:- Mentioning of depreciation figure in column No. 39 under the head ‘Other expenses’ was a mistake, still, the depreciation figure together with the computation thereon had been enclosed and claimed properly by the assessee in the return of income. This figure of depreciation duly tallies with the depreciation figure mentioned in the P&L Account of the assessee also. Hence, we do not appreciate the action of the lower authorities in disallowing the genuine claim of depreciation on a very flimsy reason. We also condemn the action of the lower authorities in invoking the provisions of section 69 of the Act r.w.s. 115BBE for the purpose of disallowing the claim of depreciation of the assessee, without even understanding and appreciating the fact that the provisions of section 69 of the Act, by no stretch of imagination, could be applied in the instant case. We direct the ld. AO to allow depreciation. Appeal of the assessee is allowed.
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