TMI Blog2019 (8) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... DSL prior to the demerger from out of the government grants made available to DSL in terms of Central Excise (CE) Tariff Notification. Inasmuch as the Revenue does not question the availability of the benefit of the Section 80IC to the Assessee during the AY in question, as noted by the ITAT, the issue concerning depreciation has been rendered revenue neutral and, therefore, academic. Consequently, while leaving the question raised by the Revenue open for consideration in an appropriate case, the Court sees no reason to interfere with the impugned of the ITAT. No substantial question of law arises. - ITA 240/2019 - - - Dated:- 24-7-2019 - S. MURALIDHAR AND TALWANT SINGH JJ. Appellant Through: Ms. Vibhooti Malhotra, Adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the assets acquired out of the amount of excise duty exemption (accounted as deferred government grant in the books of DSL). 5. According to the Assessing Officer (AO), who passed the assessment order in respect of the Assessee company, the cost of said assets in the hands of the Assessee had to be Nil as the entire cost of the assets had been met by the Central government. The AO referred to Explanation 10 to Section 43 (1) of the Act for this purpose. The case of the Assessee, however, was that it had come into existence as a result of a demerger approved by this Court and the value assigned to the assets was that which was reflected in the balance sheet which was used for the Assessee s business and shown in the demerger Sch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the extent that the CIT (A) had upheld the disallowance of depreciation. The ground urged by the Assessee was that this disallowance was without any incriminating material qua the Assessee being found during search. 8. It is seen from the impugned order of the ITAT allowing the Assessee s appeal that it has essentially gone by the fact that the Assessee would in any event be entitled to claim the benefit of statutory deduction under Section 80IC of the Act in terms of CBDT Circular No. 37/2016 dated 2nd November, 2016. It was observed by the ITAT in Para 12 of the impugned order as under: 12. Bare perusal of the operative part of the Circular (supra) goes to prove that disallowance made by the assessee U/S 32 of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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