Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (9) TMI 524 - AT - Income TaxDepreciation on Plant & Machinery leased to various parties - AR has pointed out that for the AY 2010-11 this Tribunal has decided the issue in favour of the assessee and allowed the claim of depreciation - HELD THAT:- As to maintain the rule of consistency, we follow the earlier order of this Tribunal [2020 (10) TMI 606 - ITAT DELHI] and allow the claim of depreciation. The addition made by the AO on this account is deleted. Addition u/s 14A r.w.r. 8D - Onus to prove - assessee has not claimed that the suo moto disallowance - HELD THAT:- We find that the AO has clearly pointed out while issuing the show cause notice to the assessee that the assessee has not given any basis for the suo moto disallowance of ₹ 10 lacs which amounts to recording the satisfaction by the AO. When the facts for the two assessment years are entirely different then the reasoning recorded by the AO for the year under consideration cannot be compared for the AY 2010-11. Hence, we do not find any substance in the contention of the ld. AR of the assessee that addition made by the AO is liable to be deleted. Since, the AO has computed the disallowance by applying the formula under Rule 8D which is 0.5% of the average investment then we do not find any fault in the computation of disallowance made by the AO. As we have already discussed that there is a regular transaction of purchase and sale of shares and securities by the assessee, therefore, the administrative expenses which is incurred both for the taxable income and exempt income has to be apportioned as per the formula provided in Rule 8D. Hence, this issue is decided against the assessee and in favour of the Revenue.
|