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2016 (5) TMI 1539 - ITAT MUMBAIDisallowance u/s 14A - assessee has argued that no administrative expenses were incurred to earn the exempt income therefore no expenses are required to be deducted in view of the provision u/s. 14A - HELD THAT:- The balance sheet of both the years are on the file as annexure - 1 and 2 which speaks that the assessee was having sufficient surplus amount in comparison to the investment made in mutual fund to earn the exempt income. Therefore, the said circumstances and in view of the above mentioned law settled in Reliance Utilities and Power Ltd. [2009 (1) TMI 4 - BOMBAY HIGH COURT]. We are of the view that the claim of the assessee is required to be examined a fresh in accordance with law. Therefore the finding of the learned CIT(A) on this account has been ordered to be set aside and learned Assessing Officer is hereby directed to decided the matter afresh in accordance with law. This issue is decided in favour of the Assessee against the Revenue. In the result the appeals of the assessee are allowed. Depreciation on plant and machinery as transferred from the holding company to subsidiary company -provisions of explanation 6 to sub-section (1) of section 43 - WDV in the books or in the block of assets of the transferor company shall be considered as the actual cost in the hand of the transferee company in respect of such assets - HELD THAT:- Considering the facts of the case before us we agree that the case of the assessee is duly covered by the case of Essar Oil Ltd. [2011 (7) TMI 1371 - BOMBAY HIGH COURT]. Therefore, we do not find any infirmity and illegality in the finding given by the learned CIT(A), hence we dismissed the appeal filed by the revenue.
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