TaxTMI 
TaxTMI 
2026 (8) TMI 1261
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....served on 2.1.2019 by post, as general in nature. (b) That the Ld. CIT(A) has wrongly held that the ground relating to validity of two assessment orders framed u/s. 143(3) dated 28.12.2018 at different assessed book profit u/s. 115JB as general in nature. 2. (a) That the Ld. CIT(A) has wrongly confirmed the disallowance of depreciation on "commercial vehicles" purchased between 1.1.2009 to 30.9.2009 relevant to assessment year 2009-10 and 2010- 11 claimed at higher rate of 50% as per Appendix I to Rule 5 instead of 15% by following his predecessor's order for AY 2012-13 by ignoring the arguments and Appeal Notes furnished before him. (b) That the Ld. CIT(A) has wrongly ignored the arguments of appellant for allowing the depreciation @50% instead of 15% in respect of "Block of commercial vehicles" as per provisions of section 43(6)(c)(ii) of the Income Tax Act, 1961 for AY 2009-10 which was allowed by CIT(A) in AY 2009-10. (c) That the Ld. CIT(A) has failed to consider and allow the correct depreciation on addition to commercial vehicles made in AY 2009- 10 @50% and for assessment year 2010-11 @15% against the depreciation allowed by the AO propor....
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....e of Rs. 87,19,240/- on account of Higher Depreciation on Commercial vehicles is concerned, AO noted that as per Motor Vehicle Act the vehicles purchased by the assessee do not satisfy the conditions to be called 'commercial vehicles' eligible for 50% depreciation, as claimed. He further noted that Assessee has not been able to furnish any evidence in support of its claim, hence, 15% depreciation on non-commercial vehicles is applicable. Whether a vehicle is commercial or non-commercial is decided by the RTO at the time of registration. Ld. CIT(A) confirmed the addition made by the AO. During the hearing, Ld. AR submitted and drew our attention towards page no. 332 of the paper book which is the copy of working of depreciation on commercial vehicles. It was submitted that the vehicles for which the depreciation at 50% is disallowed were all purchased between 01.01.2009 to 01.10.2009. It was further submitted that the AO has misinterpreted the conditions attached to the claim of higher rate of depreciation on commercial vehicles to conclude that the claim is only available when the assessee is involved in the business of running them on hire, etc. During the proceedings, before us, ....
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....imed u/s. 35(2AB) at Rs. 2,65,255/-. We note that this issue is covered by the Tribunal's orders dated 29.8.2025 and 31.7.2026 in assessee's own case decided in consolidated order of AY 2010-11 to 2013-14 and another recent consolidated order 2014-15 & 2015-16 respectively wherein, it has been held as under: AY 2010-11 to 2013-14 "19. Issue relating to disallowance of deduction u/s. 35(2AB) involved in assessment years 2011-12, 2012-13 & 2013-14 is concerned, we note that Ld. CIT(A) observed that the deduction under section 35(2AB) is to be limited to expenditure approved by the prescribed authority and the alternative claim of deduction u/s. 37(1) made by the appellant also cannot be approved meaning that the expenditure has not been wholly and exclusively incurred for the stated purposes of the assessee. Ld. AR submitted that it is not mandatory to take approval for the entire amount for which deduction has been claimed. The only mandatory condition is approval of the research facility by the prescribed authority. He further submitted that mandate of approval of quantum of expenditure had been put in place only with effect from 1.7.2016, hence, non-approval of q....
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....g to disallowance of Rs. 87,03,973/- u/s. 14A raised in the appeal vide Ground no. 4 is concerned, the Ld. AR has submitted that this issue is squarely covered by the recent decision dated 31.7.2026 of the Tribunal for AY 2014-15 and 2015-16 in assessee's own case wherein, it has been held as under:- "8.2 As regards addition made of Rs. 4,36,77,443/- u/r 8D(2)(iii) relating to investment yielding dividend and investment in tax free bonds is concerned, it is noted that the assessee earned Rs. 7,88,97,606/- as interest on tax free bonds and dividend of Rs. 1,86,67,287/- from preference shares. The dividend yielding preference shares as well as tax free bonds were acquired in AY 2013-14 and in current year AY 2014-15. Ld. AR drew our attention towards the page no. 8 of the Paper Book which is a copy of balance sheet as on 31.3.2014 for the relevant period, showing that assessee has Reserves and Surplus of Rs. 17,638,949,628/- whereas total investment in shares was Rs. 124.09 in AY 2013-14 and AY 2014-15 Rs. 425.91 crores respectively, thus the amount invested by the assessee is significantly less than increase in the reserves and surplus during both the years. Thus, the borro....