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2017 (1) TMI 260 - ITAT PUNERevision u/s 263 - disallowance u/s 14A - Held that:- As Assessing Officer has passed the order after obtaining necessary approval from Addl.CIT u/s.153D of the I.T. Act, therefore, the CIT has no power to revise the order u/s.263 of the I.T. Act in the instant case since the same has been passed with the approval of the Addl.CIT u/s.153D of the I.T. Act. Even on merit also, we find the issue relating to disallowance of expenditure u/s.14A since the Assessment Years involved are A.Yrs. 2004-05 to 2006-07 Rule 8D is not applicable. So far as disallowance of administrative expenditure is concerned, the same is debatable issue in the instant case considering the totality of the facts of the case since the entire dividend is from investment in mutual funds. Further only adhoc disallowance of nominal expenditure has been sustained by the Tribunal. We therefore are of the opinion that the Ld.CIT was not justified in assuming jurisdiction u/s.263 of the I.T. Act on the issue of disallowance u/s.14A Similarly, the issue relating to depreciation on assets of Hyderabad Division has been decided by the Tribunal in favour of the assessee for A.Y. 2004-05 onwards by observing that the concept of “Block of Asset” w.e.f. 01-04-1988, individual assets had lost their identity once it entered with the Block of Assets and only the Block of Assets had to be considered. It was held that the test of user had to be applied upon the block of assets as a whole and not on individual assets. On appeal by the Revenue, the Hon’ble High Court in f G.R. Shipping Ltd. [2009 (7) TMI 1169 - BOMBAY HIGH COURT ] dismissed the appeal filed by the Revenue. Therefore, since the Ld.CIT(A) in the instant case has allowed the claim of depreciation on the block of assets installed at Hyderabad Division which were not used during the impugned assessment year by following the decision of Hon’ble Bombay High Court, therefore, in absence of any contrary material brought to our notice we do not find any infirmity in the order of the CIT(A). - Decided in favour of assessee
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