TaxTMI 
TaxTMI 
2019 (1) TMI 993
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....nder s.143(3) of the Income Tax Act, 1961(here-in-after referred to as "the Act") dated 29/12/2014 relevant to Assessment Year (AY) 2011-12. 2. The Revenue has raised the following grounds of appeal:- (1) The Ld. CIT(A) has erred in law and on facts in deleting the disallowance of Rs. 1,02,04,568/- made in respect of weighted deduction u/s.32(2AB) of the Act. (2) The ld. CIT(A) has erred in law and on facts in deleting the disallowance of Rs. 9,06,593/- made u/s.14A r.w. Rule 8D of the I.T. Act. (3) The ld. CIT(A) has erred in law and on facts in deleting the disallowance of depreciation of Rs. 8,80,932/- and Rs. 4,09,830/- out of vehicle expenses made by the Assessing Officer. 3. The first issue raised by the Revenue is that....
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....the outset, we find that the issue is covered in favor of the assessee by the order of this Tribunal in assessee's case in ITA No.1130/Ahd/2015 pertaining to AY 2011-12 vide order dated 28/03/2018. The relevant extract of the order is reproduced as under: "9. We have gone through the relevant record and impugned order. So far as ground no.1 related to disallowance of Rs. 76,43,540/- made u/s.35(2AB) of the Act is concerned. Assessee would be entitled to deduction u/s.35(2AB) in the year under consideration, even thought the registration/recognition is accorded by the DSIR in the subsequent assessment year. Hon'ble Delhi High Court has held in the matter of CIT Vs. Sandan Vikas (India) Ltd. in ITA No.348/2011, it has been held as follows:....
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....ot made any disallowance of expenses as required under the provisions of section 14A of the Act. Therefore, the Assessing Officer because of the provisions of section 14A r.w. Rule 8D of the IT Rules, 1962 has made the disallowance as under: Sr.No. Particulars Amount (Rs.) 1. Interest (Rs.3780/- x Rs. 190417141/-) + Rs. 580612817/- 1240 2. Administrative expense 0.50% of average value of investment Rs. 190417141/- x 0.50% 952086 3. Expenditure directly relating to income which does not form part of total income 0 Total 953326 11.1. Accordingly, the Assessing Officer disallowed the sum of Rs. 9,53,326/- and added to the total income of the assessee. 12. The aggrieved assessee preferre....
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....re not incline to interfere in the order passed by the ld.CIT(A). Thus, this ground of revenue is dismissed. 16. Respectfully following the decision above of the Co-ordinate Bench, we dismiss the ground of appeal raised by the Revenue. 17. The last issue raised by the Revenue is that the Ld. CIT(A) erred in deleting the disallowance of depreciation expenses and vehicle expenses amounting to Rs. 8,80,932/- and Rs. 4,09,830/- respectively. 18. The Assessing Officer during the assessment proceedings found that the vehicles were registered in the individual name of the Directors. But the assessee claimed the depreciation and the vehicle expenses in its income-tax return. However, the Assessing Officer was of the view that the assess....
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....ed to be disallowed. The company is artificial person and there cannot be any personal expenses or non business expenses in the hands of the company. The appellant was not able to demonstrate that the whole expenses on running of the vehicle were made for the purpose of business. The partial use of cars by the directors for personal purpose cannot be ruled out. In view of the above, out of expenses of Rs. 4,37,351/- and insurance expenses of Rs. 1,22,479/- claimed on the running of the vehicle, a sum of Rs. 1,50,000/- disallowed by the A.O. is being confirmed. The ground of appeal is partly allowed." 21. Being aggrieved by the order of the Ld. CIT(A), now the Revenue is in appeal before us. 22. Both the parties before us relied on the....