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of <h1>Tribunal Decisions on Income, Depreciation, and Interest Disallowance</h1> <h3>Lloyd Insulations (India) Ltd. Versus Addl. Commissioner of Income Tax</h3> Lloyd Insulations (India) Ltd. Versus Addl. Commissioner of Income Tax - TMI Issues:1. Deletion of addition based on difference between income in TDS certificates and income offered for taxation.2. Deletion of addition due to non-inclusion of Excise Duty in closing stock of raw material.3. Disallowance of excess claim of depreciation on scanners and CD-writers.4. Confirmation of disallowance under section 14A r.w Rule 8D.Issue 1: Deletion of addition based on TDS certificates:The Revenue challenged the deletion of an addition of Rs. 10,75,37,079 made by the Assessing Officer due to a variance between income in TDS certificates and income offered for taxation. The Tribunal noted that the Assessing Officer's decision was based on a similar view taken in the preceding year, which was ultimately deleted by the High Court. The Tribunal upheld the deletion, stating that if no specific instance of discrepancy was pointed out, the benefit of TDS credit should not be denied. The Tribunal dismissed the Revenue's appeal against the deletion.Issue 2: Deletion of addition due to non-inclusion of Excise Duty:The Revenue appealed against the deletion of an addition of Rs. 92,37,687 made by the Assessing Officer for not including Excise Duty in the closing stock of raw material, contravening Section 145A. The Tribunal referred to a previous decision and remitted the matter to the Assessing Officer for reconsideration in line with the judgment of the High Court. The Tribunal set aside the original order on this issue.Issue 3: Disallowance of excess claim of depreciation:The Revenue contested the deletion of a disallowance of Rs. 1,57,152 on the excess claim of depreciation on scanners and CD-writers. The Tribunal upheld the deletion, citing a Special Bench order that favored the assessee's claim for depreciation at 60% on these items, considering them as part of computers.Issue 4: Confirmation of disallowance under section 14A r.w Rule 8D:The assessee challenged the confirmation of a disallowance of Rs. 19,40,796 made under section 14A read with Rule 8D. The Tribunal noted that from the assessment year 2009-10, disallowance under section 14A was required to be made as per Rule 8D. The Tribunal rejected the contention that disallowance should be based on a reasonable basis, upholding the disallowance as per Rule 8D. The Tribunal remitted the matter to the Assessing Officer for computing any interest disallowance in accordance with Rule 8D. The disallowance of Rs. 6,30,501 at 0.5% of average investment was upheld.In conclusion, the Tribunal partly allowed the appeal of the assessee and the Revenue for statistical purposes, addressing various issues related to additions, deletions, and disallowances in the assessment for the year 2009-10.
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