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TMI Blog2014 (9) TMI 1206X X X X Extracts X X X X X X X X Extracts X X X X ..... partmental Representative on the other hand, has no objection if a specific direction is given to the AO. We, therefore, direct the Assessing Officer that the written down value as at the beginning of the year shall be computed only on the basis of the orders which have already reached the finality. In other words, the depreciation actually claimed or directed to be allowed only shall be taken into consideration before arriving the written down value of the assets in question. Disallowance u/s. 14A r.w. Rule 8D(2)(iii) - HELD THAT:- A perusal of the cash flow statement at Annual report shows that the assessee had sufficient cash accruals from its own funds therefore we agree with the contention of the Ld. Counsel that no part of intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Appellant appeals against the impugned order dated April 26th 2012, of the Commissioner of Income-tax (Appeals)-17, Mumbai (the CIT(A)) (received by it on May 4th, 2012) under section 253 of the Income-tax Act, 1961 (the Act) on the following amongst other grounds each of which is in the alternative and without prejudice to one another: 1. The CIT(A) ought to have held that the Appellant had disclaimed deduction by way of depreciation under section 32(1) of the Act in the earlier years and, therefore, the written down value on which depreciation was to be allowed for the year under consideration should have been higher to that extent. 2. The CIT(A) ought to have held that no part of expenditure by way of administrati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a specific direction is given to the Assessing Officer. We, therefore, direct the Assessing Officer that the written down value as at the beginning of the year shall be computed only on the basis of the orders which have already reached the finality. In other words, the depreciation actually claimed or directed to be allowed only shall be taken into consideration before arriving the written down value of the assets in question. Respectfully following the above findings of the Tribunal (supra), we hold accordingly. Ground No. 1 is treated as allowed for statistical purpose. 6. Ground No. 2 3 relate to the disallowance u/s. 14A r.w. Rule 8D of the Act. 7. During the course of the scrutiny assessment proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. Aggrieved by this, the assessee carried the matter before the Ld. CIT(A). After considering the facts and the submissions, the Ld. CIT(A) observed that the AO has not passed any speaking order in so far as disallowance under Rule 8D to clause (ii) is concerned. He accordingly directed the AO to look into this while giving appeal effect to his order and confirmed the disallowance of other expenditure. 9. Aggrieved by this, the assessee is before us. 10. The Ld. Counsel for the assessee vehemently submitted that the entire investments have been made out of own funds therefore there is no question of allocating any interest in so far as disallowance u/s. 14A is concerned. Further, the Ld. Counsel stated that h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not find any reason to interfere with the disallowance. Ground No. 2 3 are accordingly dismissed. 13. In the result, the appeal filed by the assessee is partly allowed for statistical purpose. ITA No. 4081/M/2012- A.Y. 2009-10 14. Ground No. 1 is identical to ground No. 1 in ITA No. 4080/M/2012 though quantum may differ, therefore, on similar lines, similar reasons ground No. 1 is allowed for statistical purpose. 15. Ground No. 2 3 are identical to ground No. 2 3 in ITA No. 4080/M/2012 though quantum may differ, therefore, on similar lines, similar reasons ground No.2 3 are dismissed. 16. In the result, the appeals filed by the assessee are partly allowed for statistical purpose. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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