9911796707
TMI Blog2011 (12) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... rder dated 03.12.2007 passed by the ld. CIT(A)-XII, New Delhi. The following grounds have been taken: - 1. On the facts and in the circumstances of the case ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 4,09,769/- made by the AO on account of depreciation claimed @ 25% of WDV which was restricted to 10% by the AO on the reasoning that electric installations are covered under furniture and fittings. 2. On the facts and in the circumstances of the case ld. CIT(A) has erred in law and on facts in deleting the amount of Rs. 14,57,534/- being the excess claim of expenditure under the head interest claimed to have been paid to Kannara District Central Co-operative Bank. The appellant craves leave for reserving t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome of Current Year 13,97,940 Add: Addition on account of valuation of closing stock 3,76,998 Disallowance u/s 43B 99,604 Excess claim of Depreciation 4,09,769 Disallowance of Interest 14,57,534 37,41,845 Less: B/F Loss and unabsorbed depreciation 37,41,845 Total Income Nil Nil 3. CIT(A) order dated 3/12/07 deleted all the additions made by AO. Hence even after CIT(A) order the total income remains nil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns on this issue, we find that in Continental Constructions (supra), it has been held, inter-alia, that vide CBDT Instruction No. 5/2008 dated 15.05.2008 (supra), it was stipulated that in all loss cases, notional tax effect is to be taken into account, meaning that even in those cases where there are losses, depending upon the quantum of relief given by the Tribunal which the department wanted to challenge, the department could consider the tax effect there upon even if the net effect was that there was no positive income in the concerned year exigible to tax and it was a case of loss; that it is this Instruction of calculating the tax effect by taking into consideration even notional tax effect, which is applicable in respect of appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance of Rs. 99,604/- u/s 43B of the Income Tax Act. The AO further disallowed excess claim of depreciation amounting to Rs. 4,09,769/- and also disallowed interest amounting to Rs. 14,57,534/-. The total addition/disallowance thus, amounted to Rs. 37,41,845/-. As against this, brought forward loss and unabsorbed depreciation of Rs. 37,41,845/- was set off. The total income, therefore, came to Nil. Vide order dated 03.12.2007, the CIT(A) deleted all the additions made by the AO. As such, even after the CIT(A) s order, the total income remained Nil. In its appeal before the Tribunal, the department has challenged the cancellation of disallowance of excess claim of depreciation at Rs. 4,09,769/- and of disallowance of interest of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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