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TMI Blog2019 (4) TMI 1516X X X X Extracts X X X X X X X X Extracts X X X X ..... count of additional depreciation - HELD THAT:- The additional depreciation u/s 32 (1) (iia) of the I.T. Act is allowable as the plant machinery is wholly engaged in the manufacturing of poultry cattle feeds. Disallowance u/s 14A - assessee earned dividend income and by invoking the method of Rule 8D(2) for the purpose of calculating the disallowance u/s 14A - CIT(A) by placing reliance on the decision of the case of REI Agro Ltd. [ 2013 (9) TMI 156 - ITAT KOLKATA] restricted the disallowance taking into consideration the investment which yielded the dividend - HELD THAT:- Admittedly this exercise was not done before the AO and with the consent of both parties, we deem it proper to remand the matter to the file of AO for his fresh co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resident And Sh.S.S. Viswanethra Ravi, Judicial Member For the Appellant : Dr. P.K.Srihari, CIT DR For the Respondent : Shikha Agarwal, AOA ORDER PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER This appeal filed by the Revenue against the order dated 04.05.2017 passed by CIT(A)-20, Kolkata for AY 2014-15. 2. Ground Nos. 1 to 4 are relating to deletion of addition made on account of deduction u/s 80IA of the Income Tax Act, 1961 (in short Act ). 3. Heard both parties and perused the material available on record. The contention of the Ld.AR is that the issue raised in Ground Nos. 1 to 4 are covered by the decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earch action. In the absence of any new document/incriminating document how the assessee can be denied for deduction U/s 80- IB/80lE. The assessee has submitted a synopsis of manufacturing process of poultry feeds which amounts to 'manufacture' considering the above cited judicial precedents cited in para 6.3 above. It is also clear from the details filed with the end product that poultry feeds cannot be reversed back to its original content/material. It is dear that the poultry feed is a distinct product and amounts to 'manufacture'. It is clear that the process of producing poultry feeds involves the process of manufacturing. The Id. DR, even though relied on the decision of the Hyderabad Bench A of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue are dismissed. 5. Ground No.5 is relating to deletion of addition made on account of additional depreciation. 6. Heard both parties and perused the material available on record. We find the issue is covered by the order of Tribunal in favour of the assessee as it was noted by the CIT(A) in his order in para No.2.4 of the impugned order. The relevant portion of which is reproduced herein below:- 2. Ground No. 3: Disallowance of additional depreciation ₹ 22,51,549/: 2.1. This Ground is directed against disallowance of additional depreciation on plant machinery u/s 32(1)(iia) of the I.T. Act amounting to ₹ 22,51,549/ - on the allegation tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. Heard both parties and perused the material available on record. It is noted that the assessee earned dividend income of ₹ 4,49,816/- and by invoking the method of Rule 8D(2) for the purpose of calculating the disallowance u/s 14A, the AO disallowed ₹ 8,18,397/-. The CIT(A) by placing reliance on the decision of Hon ble High Court of Calcutta in the case of REI Agro Ltd. 144 ITD 141 (Cal.) restricted the disallowance to ₹ 64,936/- taking into consideration the investment which yielded the dividend. The relevant portion of which is reproduced herein below:- 12. I have considered AY submission on this issue and the calculation under rule 8D. Accordingly as per the calculation under Rule 8D read with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orce in the arguments of Ld.DR since there was no calculation in this respect by the AO in assessment proceedings, we deem it proper to remand the matter to the AO for his fresh consideration as indicated above. Thus, Ground No.7 raised by the Revenue is allowed for statistical purposes. 12. Ground No.8 relating to deletion of addition made on account of late deposit of employees contribution to PF ESIC. 13. Heard both parties and perused the material available on record. The AO added the impugned amount for not depositing employees contribution before the statutory due date. The CIT(A) deleted the said amount by placing reliance in the case of Alom Extrusion Ld. 319 ITR 306 (SC) by holding no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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