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TMI Blog2018 (12) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... es this the assessee has provided various other documents in the form of maintenance bills, amenities bill, shifting of files, parking space letter, computer installation report, registration with government authorities, etc. These documents are acknowledged by third party. The documents have not been doubted by the AO. We also found that the assessee had applied to TATA power and the assessee has provided bill for January and February 2012 to the AO. The assessee has provided the computer installation and - testing report and also the certificate from the Deputy Director of industries to prove that the assessee had commenced business from the said premises on 1st August 2011. Thus we observe that assessee has beyond doubt proved that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciation viz. occupation certificate issued by local authorities, possession taken of the same property, telephone bill, internet bill, electricity bills etc. and also asked to submit explanation for allowability of depreciation claimed. In response to the same, the AR of the assessee has filed the following details along with explanation for allowably of depreciation : i) Letter dated 29/06/2011 issued by M/s. Ruby Mills Ltd. ii) Possession letter dated 29/06/2011 issued by M/s.Mindset Estates P.Ltd. iii) Letter dated 13/03/2015 addressed to M/s.Tata Power Co. by the assessee for requirement of invoice and receipt for payments made copy of application form iv) Letter dt.29/12/2012 addressed to M/s. Tata Power Co. for change of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee despite his so called possession and carrying out the business from the new premises was not acceptable. The bills for the electricity was observed to be issued because of ongoing construction work in the said premises. 5. In view of the above discussions the AO, it was concluded that the building was not put to use during the year. Accordingly, the AO disallowed the depreciation claimed of ₹ 1 ,69,56,516/- and added to the total income of the assessee for the year under consideration. 6. By the impugned order, CIT(A) deleted the disallowance of depreciation after observing as under:- 14. I have carefully considered the impugned assessment order on this issue, remand report of the AO, rejoinders filed by the Id. AR of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. In this regard, remand report was called from the AO. In the remand report, the AO has raised issues viz., no separate meter issued to the appellant, common area maintenance invoices being in the name of the company, use of podium and HAVC consumption etc. . In this regard, the appellant has brought on record that: - (i) The list of the 15 employees who worked from the new Ruby office from 1st August 2011 and their Employees ID cards were provided to the AO. The employees ID Card bears the address of the new premises. (ii) It is further clarified that the word Neosoft Technologies Pvt. Ltd by the builder in some of the bills and the credit note was the result of typing error. The final reminder dated 17.1.2015 bears the name as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration. Hence, disallowance of depreciation of ₹ 1,69,56,516/- is deleted. Thus grounds of appeal no. 4.4 is allowed. 7. Against the above order of CIT(A), the revenue is in further appeal before us. 8. We have considered rival contentions and carefully gone through the orders of the authorities below and found from record that after calling remand report, the CIT(A) recorded a finding to the effect that possession of the new properties and its use made the assessee eligible for depreciation for its business purpose. From the record, we found that the assessee had purchased the office premises. The said premise was handed over by the builder to the assessee on 29/6/2011. The objection raised by the AO that the possession lette ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see is aggrieved for upholding the disallowance made u/s.14A r.w.r. 8D amounting to ₹ 1,54,091/-. 12. We have considered rival contentions and found that disallowance has been made by the AO under Rule 8D 2(ii) by observing that assessee has invested interest bearing funds for earning exempt income. 13. Learned AR invited our attention to the available surplus funds with the assessee which was invested in the securities giving exempt income. From the record we found that the assessee has a huge work force which has to be paid salary regularly and therefore in order to make funds available to the assessee regularly the surplus funds are invested in Mutual funds and Fixed Maturity Plans so as to make the funds available to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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