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of <h1>Assessee's Appeal Allowed: Remand for Section 14A, Set Off Unabsorbed Depreciation</h1> <h3>M/s. Red Robin International Ltd. Versus ITO WD 7(2) (1), Mumbai</h3> M/s. Red Robin International Ltd. Versus ITO WD 7(2) (1), Mumbai - TMI Issues involved:1. Condonation of delay in filing appeal.2. Disallowance under section 14A of the Income-tax Act.3. Set off of unabsorbed depreciation against income under the head 'capital gains'.4. Allowance of benefit under section 80-G for donation.Issue 1: Condonation of delay in filing appealThe appeal was filed 135 days late, and the assessee provided reasons for the delay, citing a change in tax consultant, being a dormant company with no staff, and turnover in the last 4 years. The Tribunal accepted the reasons as sufficient cause for the delay and proceeded to decide the appeal.Issue 2: Disallowance under section 14A of the Income-tax ActThe AO disallowed a portion of interest related to investments under section 14A, which was partly confirmed by the Ld.CIT(A). The Tribunal noted that for the Assessment Year 2007-08, Rule 8D could not be applied, and the disallowance should be worked out on a reasonable basis. The matter was remanded to the AO for deciding the quantum of disallowance based on a 'reasonable basis' as per the judgment of the Hon'ble Bombay High Court.Issue 3: Set off of unabsorbed depreciation against income under the head 'capital gains'The assessee claimed set off of unabsorbed depreciation against income from short term capital gains. The AO denied the set off, but the Tribunal referred to previous decisions allowing such set off. Relying on precedents, the Tribunal directed the AO to allow the set off of unabsorbed depreciation as claimed by the assessee.Issue 4: Allowance of benefit under section 80-G for donationThe AO was directed to allow the benefit of section 80-G for a donation made after verification of relevant facts and in accordance with the law, if the taxable income became positive after adjustments.In conclusion, the appeal filed by the Assessee was allowed for statistical purposes, with specific directions given for each issue raised in the appeal.
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