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2021 (7) TMI 1123 - ITAT DELHIAdditional depreciation on the machinery installed at various collection centers - Assessee is into business of pathological testing diagnostic laboratories is the main business of the assessee blood tests etc on collection samples at diagnostic tests at the central facilities can be carried out - According to the CIT - A these collection centers do not produce any article or thing and therefore are in the nature of office premises hence he disallowed the additional depreciation on these assets but allowed the additional depreciation on the assets which are used in the diagnostic centre and report making central facilities - HELD THAT:- We find that the collection centers are also integral part of the whole process of the business of diagnostic and report making central facilities and therefore there is no reason that additional depreciation on those facilities should not be allowed to the assessee when revenue has already accepted the claim that assessee is entitled to additional depreciation on the assets installed by it. The past assessment record also stated to be acceptance of this claim of assessee which is not negated by revenue. In view of this solitary ground raised by the assessee is allowed and the learned assessing officer is directed to grant claim of additional depreciation to the assessee which was restricted by the learned CIT - A. Accordingly ground number 1 - 3 of the appeal are allowed. Tax credit - HELD THAT:- As assessee is eligible for the tax credit of the income, which is been included in the return of income of the merged entities. Therefore, we direct the assessee to approach the assessing officer with the requisite claim, the AO is directed to verify the same and grant the credit in accordance with the law. Accordingly, the additional ground raised by the assessee is allowed with above direction. Deduction of education cess paid by the assessee on the total income - HELD THAT:- The issue of deduction of education cess as an allowable deduction is covered in favour of the assessee by the decision of the honourable Bombay High Court in Sesa Goa Ltd. [2020 (3) TMI 347 - BOMBAY HIGH COURT] and therefore we direct the learned assessing officer to grant the deduction of the same. Claim of the dividend distribution tax - HELD THAT:- We find that same is not an expenses incurred by the assessee wholly and exclusively incurred for the purposes of the business and therefore same is not allowable to the assessee u/s. 37 (1) of the act. The learned authorized representative also could not show us any other provisions of the income tax act where the expenditure is allowable to the assessee. In the result, the claim of the deduction of dividend distribution tax made by the assessee in this additional ground is rejected.
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