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Appeal Dismissed: Depreciation & Expenditure Disallowance Upheld. The appeal involved the disallowance of depreciation under section 32(1) of the Income Tax Act. The Tribunal upheld the order disallowing depreciation as ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
The appeal involved the disallowance of depreciation under section 32(1) of the Income Tax Act. The Tribunal upheld the order disallowing depreciation as the quantum of deduction under section 80-IA is not affected by claiming or not claiming depreciation. Regarding the disallowance of expenditure under section 14A, the Tribunal upheld the disallowance under Rule 8D(2)(iii) based on previous decisions and upheld the order of the Ld. CIT(A) with adjustments. The appeal was dismissed, and the Tribunal pronounced the order on 31/05/2018.
Issues: - Disallowance of depreciation under section 32(1) of the Income Tax Act - Disallowance of expenditure under section 14A of the Act
Disallowed Depreciation Issue: The appeal involved the disallowance of depreciation under section 32(1) of the Income Tax Act. The appellant argued that the written down value for depreciation should have been higher due to disclaimed deduction in earlier years. However, it was noted that the quantum of deduction under section 80-IA is not dependent on claiming or not claiming depreciation. The Tribunal upheld the order of the Ld. CIT(A) based on a previous Supreme Court decision in a similar case.
Disallowance of Expenditure Issue: Regarding the disallowance of expenditure under section 14A of the Act, the appellant had credited dividend income as exempt under section 10(34) but offered a certain amount for disallowance under section 14A. The Assessing Officer made a disallowance under Rule 8D(2)(ii) and Rule 8D(2)(iii), leading to a total disallowance after adjustments. In appeal, the Ld. CIT(A) restricted the disallowance to a lower amount. The Tribunal referred to a previous decision in the appellant's case for AY 2008-09, where a similar disallowance was upheld. The Tribunal agreed with the reasoning for disallowance under Rule 8D(2)(iii) and upheld the order of the Ld. CIT(A) based on the facts being identical.
In conclusion, the appeal was dismissed, and the Tribunal pronounced the order in open court on 31/05/2018.
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