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2023 (2) TMI 1144 - AT - Income TaxDisallowance u/s 14A r.w.r. 8D - Assessee has received dividend income which was claimed as exempt u/s 10(34) - suo moto addition by assessee - AO disallowed interest expenditure attributable to income which does not form part of the total income - HELD THAT:- In the instant case amount of expenditure by way of interest other than the amount of interest included in clause (i) incurred during the previous year was Rs. 40,19,403/- as can be deciphered from the table. With regard to B&C of the Formula the AO is directed to take into consideration the “dividend yielding investments” while computing the disallowance. The appeal of the assessee on this ground is allowed for statistical purposes. Additional depreciation on new plant and machinery - AO found that the assessee claimed depreciation @20% on though the machinery was put to use for less than 180 days and hence, depreciation as well as additional depreciation was allowed @ 50% of the allowable amount in accordance with section 32(1)(iia) - HELD THAT:- A concurrent reading of provisions of section 32(1) and 32(1)(iia) we hold that the assessee is eligible for 50% of depreciation allowance and additional depreciation on the plant and machinery procured. Disallowances of “Prior period expenses” - In the current year there is a prior period income is adjusted against prior period expenses and his practice has been consistently followed by assessee since inception & duly accepted by the department also in all its earlier orders for A.Y. 2007-08 & 2008-09 & 2010-11 - HELD THAT:- Having perused the issue, in the absence of any change in the factual content and the legal proposition we decline to interfere with the order of the ld CIT(A) which was rightly based on the earlier order of the Tribunal. Decided against revenue.
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