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2014 (3) TMI 212 - ITAT DELHIRate of Depreciation @ 60% OR 15% - Printers, UPS, Scanner Held that:- The decision in CIT Vs. BSES Yamuna Powers Ltd. [2010 (8) TMI 58 - DELHI HIGH COURT] followed - depreciation on computer accessories and peripherals allowed at the higher rate of 60% - Decided against Revenue. Disallowance u/s 14A of the Act r.w Rule 8D Held that:- The assessee has given a complete breakup of the loans taken by it and interest paid and has demonstrated that the entire loan was utilized for acquiring business assets and working capital - Neither the AO nor the CIT(A) has disputed or controverted the facts which emanate from the record - In the absence of any dispute about the utilization of borrowed fund for acquisition of business asset and there being no finding of fact that any borrowed fund was used for acquisition of mutual fund, the only germane logical conclusion is that mutual funds have no attribution of any interest income - thus, the contention of the assessee's is upheld that interest bearing funds were not utilized for acquiring of mutual funds on which assessee has earned exempt dividend income. None of the lower authorities have objectively pointed out any fault in this working - They have addressed the issue only on the basis of interest which is not attributable or apportionable in view of above findings thus, the suo motu working of assessee is reasonable in disallowance qua sec. 14A - CIT(A) should not have sustained the disallowance by recoursing to rule 8D(2)(iii) - When the interest component is not disputed towards acquisition of business assets, the application of rule 8D(2)(iii) does not arise - CIT(A) was not justified in upholding the disallowance and sending it to AO for verifications Decided in favour of Assessee.
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