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TMI Blog2016 (10) TMI 841X X X X Extracts X X X X X X X X Extracts X X X X ..... nvestment activity in his individual capacity. The assessee filed his return of income for the relevant assessment year on 6 September 2011. The case was selected for scrutiny. While framing the assessment order the AO disallowed additional depreciation claimed on by assessee on Wind Mill of Rs. 85,80,000/-under section 32(1)(iia) and also disallowed a sum of Rs. 33,89,823/-under section 14 A of the Act, in the assessment order dated 31st January 2014. Aggrieved by the order of AO assessee filed appeal before the Commissioner of Income Tax Appeals, wherein both the disallowance was confirmed in impugned order dated 15 October 2014. In the appellate proceedings assessee also prayed that with the return of income assessee furnished details of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation, the assessee installed a windmill at Jaisalmer in Rajasthan and the production was started in January 2011. The assessee is entitled for additional depreciation as the same is available to all the assessee's who were in the business of manufacture or article of things. The assessee is in the business of manufacture of pharmaceutical, chemical and also in the production of power/electricity. The additional unit installed during the year is therefore eligible for additional depreciation. Ld AR of the assessee further argued that, in Finance Act, 2012 which is applicable from 1st of April 2013. The legislature had inserted the following words in section 32(1)(iia) of Income Tax; "Or in the business of generation of generation and distr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f business, thus not entitled for the additional depreciation. The ld CIT(A) while considering this ground of appeal observed that windmill is a separate business from the business of pharmaceuticals carried out by the assessee. Ld CIT(A) further observed that the assessee can be engaged in more than one business at any given point of time. However, the ld CIT(A) concluded that the said provision would be applicable in case of an assessee engaged in the business of manufacture or production of any article of things. After the amendment of the said section with effect from 01.04.2013, the benefit of the section was extended to an assessee who was engaged in the business of generation and distribution of power. The business of manufacture or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt allowed the depreciation claimed by the assessee. In the result this ground of appeal raised by the assessee in the present appeal is allowed. 5. Second ground of appeal for our consideration is with regard to disallowance under section 14 A of the Act. Ld AR of assessee argued that this ground of appeal is covered in favour of assessee, as similar disallowance was made against the assessee for AY 2009-10 and the assessee carried the matter before the Tribunal and the same was allowed in favour of assessee vide order dated 07 Nov 2014 in ITA No 4860/M/2012, copy of which is already placed on record. Learned DR for revenue not disputed the decision of this Tribunal for AY 2009-10. 6. We have considered the rival contention of the part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the tax authorities were not justified in applying Rule 8D(2)(iii) by disregarding the accounts and claims of the assessee. According to the assessee, he had made the investment in the earlier years and major portion of exempt income from government securities. However, the ld AR could not conclusively clarify that the different concern are not operating from different addresses. Accordingly, on a conspectus of the matter, we are of the view the disallowance under section 14 A, may be restricted to Rs. 10,000/-and the same, in our view, would meet the end of Justice. Accordingly, we modified the order of ld CIT(A) on this issue and direct the AO to restrict the disallowance under section 14 A of the Act to Rs. 10,000/-." Now, coming ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we accept the voluntarily disallowance of Rs. 421,908/- offered by assessee u/s 14A of the Act, before the authorities below. We order accordingly. Thus this ground of appeal is also allowed. 7. Third ground raised in the present appeal for our consideration is with regard to short credit of TDS. Ld AR of the assessee argued that he has already filed an application before Assessing Officer under section 154 for rectification of mistake for short credit of TDS. Learned DR for revenue has no objection if appropriate direction is given to the AO for giving the credit of TDS. We have considered the rival contention of the parties. We direct the AO to pass necessary order in accordance with law, after proper verification of evidence related wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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