9911796707
TMI Blog2016 (7) TMI 250X X X X Extracts X X X X X X X X Extracts X X X X ..... first issue arises for consideration is disallowance made by the Assessing Officer u/s 14A of the Act. 3. The Assessing Officer made addition of ` 1,99,53,980/- u/s 14A of the Act. The assessee filed a working before the CIT(A). The CIT(A) directed the Assessing Officer to verify the working made by the assessee and thereafter if it is found correct then to restrict the disallowance as computed by the assessee. According to the ld. DR, since the assessee has not claimed any expenditure in respect of the income which was exempt from taxation, the Assessing Officer has rightly computed the expenditure by applying Rule 8D of the Incometax Rules. In the absence of any error in the expenditure computed by the Assessing Officer under Rule 8D, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer to verify the working made by the assessee and if it is found correct, substitute the same in place of ` 1,99,53,980/- as adopted by the Assessing Officer. This Tribunal is of the considered opinion that the provisions of Rule 8D is mandatory for computing the disallowance during the year under consideration. Therefore, the working made by the assessee has also to be taken into consideration by the Assessing Officer. Since the CIT(A) directed the Assessing Officer to verify the working made by the assessee, this Tribunal do not find any reason to interfere with the order of the lower authority. However, it is made clear that the Assessing Officer shall verify the working made by the assessee and if the working is made as per R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year 2005-06, allowed the claim of the assessee. In fact, the CIT(A), after reproducing the observation made by this Tribunal for assessment year 2005-06 in I.T.A.No.811/Mds/2010, allowed the claim of the assessee. Merely because the Revenue's appeal is pending before the Madras High Court, that cannot be a reason to take a different view. 9. We have considered the rival submissions on either side and also perused the material available on record. The addition made by the Assessing Officer on account of unexpired value of AMC was examined by this Tribunal in assessee's own case for assessment year 2005-06 in I.T.A.No.811/Mds/2010. This Tribunal found that the contention of the assessee that it could not recognize revenue for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20% depreciation since the machinery was used for less than 180 days. In fact, the Assessing Officer allowed only 10% of the additional depreciation, therefore, the balance 10% of the depreciation was claimed by the assessee during the year under consideration. The Assessing Officer, however, disallowed the claim of the assessee on the ground that there is no provision in the Income-tax Act, 1961 to carry forward the additional depreciation to the subsequent assessment year. Placing reliance on the judgment of the Karnataka High Court in the case of CIT vs M/s Rittal India Pvt. Ltd, I.T.A.No.590 of 2015, dated 4.1.2016, the ld. Counsel submitted that on identical set of facts, the Karnataka High Court allowed the additional depreciation in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue and placing reliance on the earlier Division Bench judgment of the Karnataka High Court in CIT vs M/s Rittal India Pvt. Ltd dated 24.11.2015, found that the assessee is entitled for the balance 10% additional depreciation in the subsequent year. In view of the judgment of the Karnataka High Court, this Tribunal is of the considered opinion that the order of this Tribunal in the case of Brakes India (supra) may not be applicable to the facts of the case. By respectfully following the judgment of the Karnataka High Court in M/s Rittal India Pvt. Ltd(supra), this Tribunal is of the considered opinion that the assessee is entitled for the balance additional depreciation to the extent of 10% during the year under consideration. Accordingly, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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