9911796707
TMI Blog2014 (2) TMI 462X X X X Extracts X X X X X X X X Extracts X X X X ..... a Milk Food Industries Ltd., Versus Deputy Commissioner of Income Tax Circle 4(1), Agra. & Others [2012 (12) TMI 189 - ITAT, AGRA] followed - the benefit of 40 per cent. depreciation allowance was admissible only for vehicles used for business of hire in view of the provisions of Entry No.III(ii)E(1-A) of Part I of Appendix I to the Income-tax Rules, 1962, and since the assessee used the vehicles for its own business of transporting its goods only 30 per cent. depreciation was allowable. Disallowance of deduction u/s 80IB of the Act – Duty drawback – Held that:- The decision in Liberty India vs. CIT [2009 (8) TMI 63 - SUPREME COURT] followed – duty drawback, rebate etc. should not be treated as adjustment (credited) to cost of purchase or m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee but the assessee failed to appear on the adjourned date i.e. 06.08.2013. Considering the facts of the case, we proceed to decide the appeals on merit on the basis of materials available on record. 3. First we take up ITA Nos.101 & 102/Agra/2013 filed by the assessee. The assessee has raised common grounds in both the appeals based on identical set of facts. The first common ground raised in assessee's appeal is pertaining to claim of the assessee for higher rate of depreciation on the Boilers and Tucks used or its own purposes. 4. During the assessment proceedings, the A.O. noticed that the assessee has claimed 100% depreciation on Boilers on the ground that the Boilers installed in the factory premises on the plea that investmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee claimed 30% depreciation on trucks used for assessee's business. The A.O. restricted the depreciation on truck @ 15%. 8. The CIT(A) followed the order of I.T.A.T. in assessee's own case in ITA No.42/Agr/2012 & 58/Agra/2012 for the A.Y. 2008-09 vide order dated 20.07.2012 and confirmed the order of A.O. 9. We find that the CIT(A) has followed the order of I.T.A.T. in assessee's own case ITA No.42/Agr/2012 & 58/Agra/2012 for the A.Y. 2008-09, order dated 20.07.2012. The relevant finding of I.T.A.T. in the above appeal is reproduced as under :- "14. After hearing the ld. Representatives of the parties, we find that the issue is squarely covered in favour of the Revenue by the judgment of Hon'ble M.P. High Court in the case of CIT vs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he CIT(A) by following the judgement of the Apex Court in the case of Liberty India vs. CIT, 317 ITR 218 (SC). We find that the CIT(A) has followed the judgement of Apex Court. In the light of the fact, we do not find any infirmity in the order of CIT(A). Order of CIT(A) is confirmed on the issue. Thus, the second ground raised by the assessee in both the appeals for A.Ys. 2006-07 & 2009-10 are rejected. 14. In the result, both the appeals of the assessee are dismissed. 15. Now we take up ITA No.151/Agra/2013 filed by the Revenue. 16. The effective ground raised in Revenue's appeal is in respect of deletion of addition of Rs.52,42,261/- made by the A.O. invoking section 14A of the Income Tax Act, 1961 ('the Act' hereinafter). 17. The di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . vs. DCIT in ITA No.260 & 261/Agr/2011 order dated 08.06.2012 has held as under :- "8. We have heard the ld. Representatives of the parties and records perused. We find that the case of Assessing Officer is disallowance of interest. The interest expenses is allowable under section 36(1)(iii) of the Act. Such disallowance cannot be made in case where the assessee is having sufficient interest free funds as held by the I.T.A.T., Agra Bench in the case cited above. This view is also fortified by the judgement of Hon'ble High Court of Bombay in the case of CIT vs. Reliance Utility and poer limited, 313 ITR 340 (Bombay). In the case under consideration it is admitted fact that the assessee was having sufficient interest free funds to cover the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14A of the Act. We, therefore, delete the additions of Rs.15,00,000/- made by the Assessing Officer and sustained by the CIT(A) for each Assessment Year i.e. 2007-08 & 2006-07." 7. We follow the order of I.T.A.T. wherein the contention of the Ld. Departmental Representative that the own capital has been already invested in the business is not acceptable as per detailed discussions made by the I.T.A.T., Mumbai Bench in its order in the case of H.P. Shah & Co. ITA No.3694/Mum/2006 order dated 15.01.2009. Since in the case under consideration, the assessee was having sufficient own funds to make investment in shares, under the circumstances, the disallowance is not warranted. We accordingly delete the addition of Rs.21,94,877/-." 19. Since t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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