2005 (5) TMI 654

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....econd ground relates to the disallowance of deprecation claimed by the assessee on imported moulds amounting to Rs. 2,25,271. The brief facts are that the appellant-company imported moulds during the year which were claimed to have been received and put to use by it during the previous year relevant to assessment year 1999-2000 itself. Although the appellant-company claimed that the moulds were received in the factory on 24-3-1999 but the Assessing Officer noted that the date of receipt as mentioned on the invoice is 29-3-1999. In any case it is a common ground between the parties that the moulds were received during the previous year relevant to the assessment year under consideration. The appellant-company had also stated that the moulds ....

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....he case of Capital Bus Service (P.) Ltd. v. CIT [1980] 123 ITR 404. 5. The ld. DR relied on the orders of the lower authorities and also referred to the decision of the Hon'ble Bombay High Court in the case of Dinesh Kumar Gulab Chand Agrawal v. CIT [2004] 267 ITR 768 with regard to passive use contended by the appellant. 6. We have heard the contentions of both the parties. As far as the claim of depreciation on moulds is concerned, it is an admitted fact that the mould was received at the factory of the appellant-company within the financial year relevant to assessment year. The assessee claims that it has sold goods to Relaxo Footwears Ltd. during the year by using the imported moulds in the manufacture. Evidently, the sale of good....

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....rnover and accordingly the deduction under section 80-IA was reduced to Rs. 21,07,395. The CIT(A) has sustained the action of the Assessing Officer. The grievance of the assessee is that such apportionment has been made by disregarding the books of account and records maintained by it. 9. After considering the rival stands with respect to the claim of deduction under section 80-IA, we are of the view that the language of section 80-IA makes it clear that only the profits derived from the eligible business is required to be allowed as deduction, meaning thereby that all direct and indirect expenses have to be taken into account before arriving at the deduction allowable under section 80-IA. The dispute pertains to allocation of expenses d....