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TMI Blog2020 (7) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. CIT(A) on this issue and restore the same to the file of the A.O. for examining it afresh. Disallowance u/s 14A - Provisions of Rule 8D were omitted to be applied for computing disallowance u/s 14A - HELD THAT:- A.R. submitted that the A.O. has applied provisions of rule 8D(2)(iii) without affording adequate opportunity to the assessee. He submitted that assessee should be in a position to explain its case before the A.O., if an opportunity is given to the assessee.D.R. also agreed to the same. Accordingly, we set aside the order passed by Ld. CIT(A) on this issue also and restore the same to the file of the A.O. for examining it afresh. - ITA No.936/Bang/2019, C.O. No.52/Bang/2019 (Arising out of ITA No.936/Bang/2019) - - - D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sified those machineries as Plant and Machinery General and Plant and Machinery Office equipments . The AO took the view that the depreciation is allowable at normal rates and not @ 60% as claimed by the assessee. (b) The assessee had disallowed a sum of ₹ 11,33,846/- u/s 14A of the Act and the same was accepted in the original assessment order. The AO noticed that the provisions of Rule 8D were omitted to be applied for computing disallowance u/s 14A of the Act. If the provisions of Rule 8D(2)(iii) is applied, the disallowance worked out to ₹ 1,40,22,353/-. 5. When the notice dated 04-12-2017 issued by the AO u/s 154 of the Act was received by the assessee, it sought adjournment requesting the AO to give next date o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s computers and hence the assessee has treated them as Computers and accordingly claimed depreciation @ 60%. Accordingly, the Ld. A.R. submitted that the A.O. was not justified in restricting the rate of depreciation to 10%/15%, without making any further examination, presuming that they are not computers. 8. On the contrary, Ld. D.R. submitted that the assessee did not give any breakup details of items that were included under the heading Plant and Machinery - General and Plant and Machinery - Office . Hence, on the face of it, it appeared that the assessee has claimed higher rate of depreciation as applicable to computers on the items, which are otherwise eligible for depreciation @ 15%/10%. The Ld. D.R. further submitted that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uire any expenditure required to be incurred. He submitted that the assessee has, however, disallowed a sum of ₹ 11.33 lakhs in order to comply with the provisions of section 14A of the Act. Hence, there is no requirement to apply provisions of rule 8D(2)(iii). The Ld. A.R. submitted that the A.O. has applied provisions of rule 8D(2)(iii) without affording adequate opportunity to the assessee. He submitted that assessee should be in a position to explain its case before the A.O., if an opportunity is given to the assessee. 12. The Ld. D.R. also agreed to the same. Accordingly, we set aside the order passed by Ld. CIT(A) on this issue also and restore the same to the file of the A.O. for examining it afresh. 13. Since we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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