9911796707
TMI Blog2019 (4) TMI 690X X X X Extracts X X X X X X X X Extracts X X X X ..... he Assessing Officer on account of addition of depreciation to the extent of Rs. 1,96,10,677/- is bad in law. 2. That the Assessing Officer/ CIT(A) failed to appreciate that the claim of depreciation under the Income Tax Act law stands on different footing with the claim of the depreciation in the books of account. 3. That the order passed by the Assessing Officer and confirmed by the ld CIT (A) is bad in law. 4. That the disallowance of Rs. 29,91,405/- made by the Assessing Officer and upheld by the CIT(A) is bad in law. 5. That the CIT(A) failed to consider the detailed submissions and has passed order in a casual manner to confirm the disallowance. 6. That the disallowance u/s 14A read with Rule 8D is not as per the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of depreciation written back. Therefore, ld AO is in appeal before us. 7. The ld AR submitted that above amount was written back in the books of account as per audited balance sheet of the assessee because of the reason that there was a change in the method of providing of depreciation from written down value method to straight line method. As a result there was a difference of depreciation provided up to the beginning of the year on the written down value method now changed to straight line method of Rs. 19610677/-. Same was credited to the profit and loss account of the assessee and therefore the same was reduced in the computation. He submitted that this adjustment is book entry as per the guidance note of the ICAI on change in m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct the ld AO to delete the disallowances of Rs. 19610677/-. Accordingly, ground No. 1 to 3 of the appeal of the assessee are allowed. 10. Ground No. 4 to 6 of the appeal are against the disallowances of Rs. 2991405/- u/s 14A of the Act. It is found that assessee has invested in shares and mutual funds and therefore, the ld AO issued notices to the assessee as to how the interest and expenditure attributable to the investment of Rs. 50367218/- made in the shares and mutual funds. AO notes that assessee has secured loan of Rs. 51.28 cross and unsecured loan of Rs. 28.46 lakhs . The assessee submitted its reply resisting the disallowances. However, the ld AO invoked the provisions of section 14A of the Act and made disallowances of Rs. 299140 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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