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2015 (7) TMI 2 - AT - Income TaxClaim for deduction u/s.80I/80IA rejected - Held that:- As decided the issue against the assessee as reported in Dhariwal Industries Limited. Versus Additional Commissioner Of Income-tax, Range-1, Pune(2007 (8) TMI 410 - ITAT PUNE) holding that Gutkha and Pan Masala manufactured by the assessee company is a "tobacco preparation" within the meaning of Eleventh Schedule of the Income Tax Act. Therefore, the assessee is not entitled to deduction u/s.80I/80IA of the Income Tax Act. - Decided against assessee. Amount received on transfer of sales tax incentive - revenue receipt or capital receipt - Held that:- The various decisions relied on by the Ld. Counsel for the assessee are distinguishable and not applicable to the facts of the present case. Since the Tribunal in the case of the sister concern of the assessee, i.e. Rasiklal M. Dhariwal (HUF) has already given a categorical finding that the sales tax benefits received by the assessee under the instant scheme are in the course of carrying on its trade more profitably, therefore, in absence of any contrary material brought to our notice against the above finding of the Tribunal, we following the decision of the Coordinate Bench of the Tribunal, uphold the order of the CIT(A) upholding the action of the AO in treating the amount received on transfer of sales tax incentive as a revenue receipt. - Decided against assessee. Re-computing the Book Profits u/s.115-JB - Held that:- In view of the direction in the case of Pruthvi Brokers and Shareholders Pvt. Ltd., Court [2012 (7) TMI 158 - BOMBAY HIGH COURT] and the findings of the AO at para 4.1 of the assessment order, we find force in the submission of the Ld. Counsel for the assessee that brought forward business losses and depreciation of the merging companies is a part of the brought forward business loss and depreciation of Dhariwal Industries Ltd and the assessee is entitled to take into account the same for the purpose of computation of book profit u/s.115JB. Depreciation on the related assets of Hyderabad unit - disallowance of claim on the ground that assessee has not used its Plant & machinery relating to Pan masala/Gutkha establishment at Hyderabad at all during the previous year relevant to the A.Y. 2004-05 - Held that:- In the instant case although the assets were not put to use due to restraint by State Govt. due to the notification which was subsequently held to be illegal by the Hon'ble Supreme Court, however, the assets were ready for use and it has already entered into the block of assets. Therefore, in view of the decisions in the case of G.R. Shipping Ltd. [2009 (7) TMI 1169 - BOMBAY HIGH COURT], we hold that the assessee is entitled to depreciation on the assets of Hyderabad unit which have already entered into the block of assets. Accordingly, the order of the CIT(A) is set aside and the ground raised by the assessee is allowed.
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