TMI Blog2016 (11) TMI 1669X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be said that the infrastructures created by the assessee are for temporary use of the assessee. Therefore, the Assessing Officer has rightly treated the expenditure as capital in nature and allowed depreciation at the rate of 10%. This Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. Disallowance u/s 14A r.w.r. 8D - Whether there was no direct expenditure under first limb of Rule 8D(2)? - Referring to limb (ii) of Rule 8D(2), the Assessing Officer found that under Rule 8D(2), disallowance was made - HELD THAT:- For the purpose of limb (ii), the Assessing Officer has to compute the disallowance by following the method prescribed under Rule 8D(2)(ii). Simil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gn charges and temporary repairs to the building. The Assessing Officer, however, treated the expenditure as capital in nature and allowed depreciation at the rate of 10%. According to the Ld. representative, these are of temporary expenditure, therefore, the Assessing Officer has to allow the same as revenue expenditure. On a query from the Bench, how the construction of compound wall is treated as a temporary expenditure by the assessee? The Ld. representative submitted that it is not only a construction of compound wall, underground sewage drain was also constructed temporarily and temporary godown for keeping the cables was also constructed. Therefore, according to the Ld. representative, the assessee is entitled for allowance of e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment year 2012-13, the only issue arises for consideration is disallowance made by the Assessing Officer under Section 14A of the Income-tax Act, 1961 (in short 'the Act') read with Rule 8D of the Income-tax Rules, 1962. 7. Shri M. Viswanathan, the Ld. representative for the assessee, submitted that the Assessing Officer disallowed the expenditure under second and third limbs of Rule 8D(2). According to the Ld. representative, the Assessing Officer has to restrict himself only to the income earned by the assessee. Therefore, the disallowance made by the Assessing Officer beyond the income earned by the assessee is not justified. 8. We have heard Shri Supriyo Pal, the Ld. Departmental Representative also. The As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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