2013 (3) TMI 791 - AT - Income Tax

Summary

Issues involved: Appeal against CIT(A) order on disallowance u/s 14A, depreciation rate on moulds, and application of section 145A.

Disallowance u/s 14A:
The issue was restored to the AO for re-computation based on relevant facts and circumstances. The Tribunal directed the AO to compute the disallowance consistently with the preceding years. The CIT(A) order was set aside with directions to the AO. Ground no. 1 was allowed for statistical purposes.

Depreciation on moulds:
The CIT(A) had confirmed the AO's decision to restrict depreciation on moulds to 15% instead of the claimed 30%. The Tribunal noted that in previous years, the CIT had proposed a reduction to 25%, but this was overturned by the coordinate Bench. Following this consistency, the Tribunal directed the AO to allow depreciation at 30% as claimed. Ground no. 2 was allowed accordingly.

Application of section 145A:
The issue related to the calculation of closing stocks as per the ICAI method under section 145A. The Tribunal observed that in the previous year, the coordinate Bench had restored a similar issue to the AO. It was deemed appropriate to maintain consistency in calculating closing stocks for the current year as well. The CIT(A) order was set aside with directions to the AO to compute closing stock as per ICAI provisions. The appeal was treated as allowed for statistical purposes.

Separate Judgement by Judges:
No separate judgement was delivered by the judges in this case.