2011 (12) TMI 25

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....on of Rs. 4,09,769/- made by the AO on account of depreciation claimed @ 25% of WDV which was restricted to 10% by the AO on the reasoning that electric installations are covered under furniture and fittings. 2. On the facts and in the circumstances of the case ld. CIT(A) has erred in law and on facts in deleting the amount of Rs. 14,57,534/- being the excess claim of expenditure under the head interest claimed to have been paid to Kannara District Central Co-operative Bank." The appellant craves leave for reserving the right to amend, modify alter, add or forgo any grounds of appeal at any time before or during the hearing of this appeal." 2. Earlier, vide order dated 05.06.2007, the Tribunal dismissed the department's appeal for ....

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....aim of Depreciation 4,09,769     Disallowance of Interest 14,57,534       37,41,845     Less:       B/F Loss and unabsorbed depreciation 37,41,845     Total Income Nil Nil 3. CIT(A) order dated 3/12/07 deleted all the additions made by AO. Hence even after CIT(A) order the total income remains nil   Nil 4. Revenue filed appeal before ITAT only on following issues:       1) Excess claims of depreciation 4,09,769     2) Disallowance of Interest 14,57,534   5. With reference to the above working of tax effect, the ld. Counsel for the a....

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....iven by the Tribunal which the department wanted to challenge, the department could consider the tax effect there upon even if the net effect was that there was no positive income in the concerned year exigible to tax and it was a case of loss; that it is this Instruction of calculating the tax effect by taking into consideration even notional tax effect, which is applicable in respect of appeals filed on or before 15.05.2008; that however, when it comes to the meaning to be assigned to the tax effect and the modified manner/formula is prescribed in the Instruction dated 15.05.2008, such a Circular, on this aspect, has to be treated as having prospective application, more so, when para 11 thereof specifically so provides. Therefore, there i....