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2016 (3) TMI 120 - AT - Income TaxReducing the subsidy for the purpose of calculation of depreciation - Held that:- Section 43(6)(c) of the Act, the WDV of an asset can be computed only in the manner provided thereunder namely by adding the actual cost of any asset falling within that block acquired during the previous year or by deducting the money payable in respect of any asset within the block, which is sold, discarded or demolished or destroyed during the previous year together with the amount of scrap value. It has further held that the statute does not contemplate any other category for computing the WDV of a block of assets and that Section 43(6)(c) of the Act does not permit reducing the WDV of the block of assets by the amount of subsidy received in relation to some of the assets forming part of the block of assets. When the statute does not contemplate computation of actual cost of assets after it becomes part of a block of assets, Explanation 10 to Subsection (1) of Section 43 of the Act cannot be made applicable to assets of which the actual cost has been determined and forms part of a block of assets. Before us, Revenue has not brought any contrary binding decision in its support nor has pointed out as to why the ratio of the decision rendered by Hon’ble Gujarat High Court in the case of Banco Products (supra) would not be applicable to the present facts of the case. In such a situation, we are of the view that the ground of assessee deserved to be allowed in favour of assessee. Adjustment of bad and doubtful debts for computing book profit u/s.115JB - Held that:- Assessing Officer was not justified in adding the provision for bad and doubtful debts to the net profits for the purpose of Section 115JB. We thus set aside the addition made by Assessing Officer - Decided in favour of assessee Disallowance u/s deduction u/s.80IA - Held that:- We find that Assessing Officer has summarily dismissed the claim of assessee whereas it is assessee’s contention that it is eligible for claim of deduction u/s.80IA(4). After placing reliance on the aforesaid decision in case of CIT vs. Mitesh Impex reported in (2014 (4) TMI 484 - GUJARAT HIGH COURT ) in the present facts of the case, we are of the view that in the interest of justice, the ground needs to be restored to the file of Assessing Officer to decide the claim of assessee of deduction afresh in accordance with law. Needless to state that AO shall grant adequate opportunity of hearing to the assessee. Assessee is also directed to co-operate by promptly filing all the required details called for by the Assessing Officer. - Decided in favour of assessee for statistical purposes.
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