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2022 (2) TMI 395 - ITAT PUNEDisallowance u/s 14A read with rule 8D - A.O was of the opinion that there is always an element of indirect expenditure for earning such exempt income which the assessee has not completely identified and offered to tax - HELD THAT:- We are of the considered view, on hearing the submissions of the parties herein that as per the view taken by the Hon’ble Special Bench of the Tribunal in Vireet Investments Pvt. Ltd.[2017 (6) TMI 1124 - ITAT DELHI] the A.O would exclude investments which do not yield any exempt income for the year under consideration while computing the disallowance u/s 14A r.w.r. 8D(2)(iii). Accordingly, we set aside the order of the learned CIT(A) and remand the matter back to file of the A.O as indicated hereinabove. A.O shall comply with principles of natural justice while re-adjudicating the issue. Grounds No. 1 and 2 and additional ground No. 1 are allowed for statistical purpose. Disallowance of the claim of additional depreciation u/s 32(1)(iia) - Whether assessee is entitled to 50% of the additional depreciation u/s 32(1)(iia) for subsequent assessment year ? - HELD THAT:- Hon’ble Karnataka High Court in the Rittal India Pvt. Ltd. case [2016 (1) TMI 81 - KARNATAKA HIGH COURT] had given the right to the assessee to claim the remaining unclaimed 50% depreciation in the subsequent assessment year and at that time the proviso to section 32 was also not there but right now with the insertion of such proviso, this right has been statutorily recognized. That as regards, whether such proviso would apply to past periods or not, the judgment of the Hon’ble Madras High Court (supra.) which is still operational and it has been held that the said proviso was only clarificatory in nature and would thus apply to pending cases covering past periods also. Thus, Grounds No.6 and 7 raised in appeal by the assessee are allowed. Education cess and secondary and higher education cess paid be allowed as a deduction while computing the total income of the assessee - admission of the additional ground - HELD THAT:- The assessee had correctly placed reliance on the decision of the Hon’ble Supreme Court in the case of National Thermal Power Co. Ltd. [1996 (12) TMI 7 - SUPREME COURT] for admission of this legal ground. We find that Hon’ble Bombay High Court in the case of Sesa Goa Ltd.[2020 (3) TMI 347 - BOMBAY HIGH COURT] has held that the Education Cess and Secondary and Higher Education cess are allowable as a deduction while computing the income of the assessee. Respectfully following the said judicial pronouncement, we direct the A.O to allow the deduction on account of education cess and secondary and higher education cess paid for the year under consideration by the assessee. We therefore, allow this ground of the assessee.
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