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2014 (6) TMI 1034 - AT - Income TaxDisallowance of deduction of administration and interest expenses etc. - appellant is not carrying on any business and income of the appellant is assessable under the head “income from other sources - HELD THAT:- As decided in own case [2012 (11) TMI 658 - ITAT AHMEDABAD] there was no change in the amounts outstanding as on 31/03/2003 and 31/03/2004 . We have also noted that the amount of interest accrued was also identical in figures, found to be outstanding as on 31/03/2003 and 31/03/2004. Meaning thereby that there was no accrual of interest liability, though admittedly the ld.AR has stated before us that “mercantile system” of accounting was adopted by the assessee. In that case, the assessee has to prove the basis on which the interest expenditure was claimed. A.O. is hereby directed to proceed accordingly as per law. In respect of the interest portion, since the facts are identical in this year also, we restore this issue back to the file of AO in the light of the decision passed by the Tribunal. Since the facts are identical in this year also, therefore the issue is restored back to the file of AO for fresh decision. Thus, this ground of assessee’s appeal is allowed for statistical purposes. Disallowance of setting off of brought forward unabsorbed depreciation u/s.32(2) against “income from other sources” - HELD THAT:- In the case in hand, the assessee-company is under liquidation and, therefore, no activity is being carried out by the assessee. However, the ratio laid down by the Hon’ble Apex Court in the case of CIT vs. Virmani Industries Pvt.Ltd. [1995 (10) TMI 1 - SUPREME COURT] would be applicable to the extent for availing the benefit u/s.32(2) of the Act. The assessee need not carry on any business or profession. It is not coming out of the records that from which year the depreciation was being carried forward by the assessee and why the assessee has accepted the decision of the ld.CIT(A) in the Asst.Year 2004-05 since no ground against the rejection of claim was raised by the assessee before the Tribunal in [2012 (11) TMI 658 - ITAT AHMEDABAD] . In the present year, the CIT(A) has followed the decision rendered in the AY 2004-05. Under these facts, we are unable to accept the claim of the assessee and, therefore, this ground is rejected.
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