2016 (12) TMI 1749

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....see relates to the disallowance made by the Assessing Officer u/s. 14A of the Act. During the year under consideration the assessee received dividend income of Rs. 25,32,356/- and claimed the same as exempt u/s. 10(34) of the Act. The assessee disallowed a sum of Rs. 21,978 u/s. 14A of the Act. However, the Assessing Officer took the view that the disallowance is required to be made as per Rule 8D of the I.T. Rules and accordingly computed the disallowance u/r. 8D(2)(iii) of the I.T. Rules. At Rs. 16,73,028/-. The same was confirmed by the learned CIT(A) and hence the assessee has filed this appeal before us. 3. We have heard the parties on this issue and perused the record. Learned counsel appearing for the assessee submitted that ident....

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....rther, all these activities have been carried out by a staff. Hence the assessee has disallowed a portion of his salary u/s. 14A of the Act. Learned AR further submitted that the Assessing Officer did not record his dissatisfaction over working given by the assessee by making due reference to the books of accounts and he has mechanically applied provisions of section 14A of the Act. He submitted that the addition made by the AO is liable to be dismissed on this ground also. 4. On the contrary, learned Departmental Representative submitted that the Assessing Officer was required to apply provisions of Rule 8D for computing disallowance u/s. 14A of the Act. 5. Having heard the rival submissions, we find merit in the contentions of the a....

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....rdingly. 6. We shall now take up the appeal filed by the Revenue. The only issue urged in this appeal is whether the learned CIT(A) was justified in holding that the assessee is entitled to higher rate of depreciation at 30% on moulds held by the assessee, as against 15% allowed by the Assessing Officer. 7. We heard the parties on this issue and perused the record. We noticed that the learned CIT(A) has allowed claim of the assessee by following decision rendered by the Coordinate Bench in assessee's own case relating to A.Y. 2006-07 (ITA No. 849/Mum/2010 dated 13.3.2013). For the sake of convenience, we extract below the observations made by the learned CIT(A) on this issue : I have considered the Submissions of the appellan....