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2012 (8) TMI 549 - ITAT, PUNEDisallowance of Loss on sale of worn-out machinery - Held that:- Provisions of section 32(1)(iii) relates to depreciation in case of Building, Machinery, Plant or Furniture in respect of which depreciation as claimed and allowed under Clause (1) and which is sold, discarded, demolished or destroyed in the previous year and that in every case the discarded/obsolete machineries need not be sold and can be used in the business of the assessee as a raw material - the matter is restored to the file of the AO for verification - in favour of assessee. Disallowance u/s. 14A - Held that:- From the copy of the balance sheet the investment during the impugned assessment year has gone down as against that was on 31-03-2004 and the share capital and free reserves of the assessee company has gone upto Rs. 12.68 Crores as on 31-03-2005. There is no finding given by the AO or the learned CIT(A) that any part of the borrowed fund has been utilised for acquiring shares and bonds the income of which is exempt from tax - the provisions of Rule 8D are not applicable to the impugned assessment year as would apply with effect from AY 2008-09 and since the free reserves and share capital of the assessee company is substantially high as against the amount of investment in shares, therefore no disallowance u/s. 14A is required - in favour of assessee. Disallowance of depreciation on windmill - Held that:- AO following the order of his predecessor for AY 2004 - 05 has disallowed the claim of higher depreciation and made the addition which was reversed by the Tribunal and the CIT(A) while adjudicating the issue for Assessment Year 2005-06 has followed the order of the Tribunal in assessee’s own case for Assessment Year 2004-05 - no infirmity in the order of CIT(A) for allowance of claim - in favour of assessee. Disallowance towards amounts receivable from PCMC and Cenvat - Held that:- CIT(A) upheld the disallowance on the ground that Octroi and Central Excise/CENVAT which are sums payable by the assessee by way of tax, duty, cess or fee within the meaning of section 43B and therefore are allowable only for the previous year in which the same is actually paid irrespective of the previous year in which the liability to pay such sum was actually incurred by the assessee according to the method of accounting regularly employed by them.Since the assessee in the instant case has admitted that these amounts pertain to earlier years, therefore, he disallowed the claim of the assessee - against assessee.
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