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TMI Blog2023 (2) TMI 1144X X X X Extracts X X X X X X X X Extracts X X X X ..... and 32(1)(iia) we hold that the assessee is eligible for 50% of depreciation allowance and additional depreciation on the plant and machinery procured. Disallowances of Prior period expenses - In the current year there is a prior period income is adjusted against prior period expenses and his practice has been consistently followed by assessee since inception duly accepted by the department also in all its earlier orders for A.Y. 2007-08 2008-09 2010-11 - HELD THAT:- Having perused the issue, in the absence of any change in the factual content and the legal proposition we decline to interfere with the order of the ld CIT(A) which was rightly based on the earlier order of the Tribunal. Decided against revenue. - ITA No. 2043/Del/2017, 1969/Del/2017 - - - Dated:- 7-2-2023 - DR. B. R. R. KUMAR, ACCOUNTANT MEMBER AND SH. YOGESH KUMAR US, JUDICIAL MEMBER For the Assessee : Sh. Manoj Kumar Anand, CA For the Revenue : Sh. Ajay Kumar Arora, Sr. DR ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeals have been filed by the assessee and the Revenue against the orders of ld. CIT(A)-33, New Delhi dated 27.01.2017. 2. The assessee ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt u/s 10(34) of the Act. The assessee has disallowed an amount of Rs. 905915/-. A suo moto u/s 14A. The total investment made by the assessee was Rs. 21.38 crores. The AO disallowed interest expenditure of Rs. 29,20,847/- attributable to income which does not form part of the total income. Before the ld. CIT(A), the assessee submitted the details of interest of Rs. 48,67,65,130/- as under: Details of Interest Particulars Amount Remarks Interest on Loan from GO1 43,34,31,714 Working capital assistance from Govt. to run Sick Mills Interest on Bank Loans for Working Capital 29,26,573 For working capital requirements of NTC Interest on trade credits 15,13,299 Interest paid to Selling Agents against their Security Deposit Interest on cotton dues 2,57,13,091 Interest paid against purchase of cotton Interest on other loan and deposits 9,90,828 Interest pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... la, namely: AXB C Where A=amount of expenditure by way of interest other than the amount of interest included in clause (i) incurred during the previous year; B=the average of value of investment, income from which does not or shall not form part of the total income, as appearing in the balance sheet of the assessee, on the first day and the last day of the previous year; C=the average of total assets as appearing in the balance sheet of the assessee, on first day and the last day of the previous year; 6. In the instant case amount of expenditure by way of interest other than the amount of interest included in clause (i) incurred during the previous year was Rs. 40,19,403/- as can be deciphered from the table. With regard to B C of the Formula the AO is directed to take into consideration the dividend yielding investments while computing the disallowance. The appeal of the assessee on this ground is allowed for statistical purposes. Additional Depreciation: 7. The company claimed additional depreciation on new plant and machinery installed during the year from the details furnished, the AO found that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of CIT Vs. Sambhaji Nagar Coop. Hsg. Society Ltd., I.T.A. No. 1356 of 2012, Date of Order 11.12.2014, by honourable Bombay High Court held that sale of FSI isn t taxable. Please note that this order is after the date of filling of return as on 29.09.2012. In our case Rs. 186,85,46,000 has been shown as long Term Capital Gain. Your Goodself are requested to reduce the taxable income (MAT tax effect also) by Rs. 186,85,46,000 and oblige. It is further submitted that as held in the following cases, if any expenses (or Excessive Income) isn t claimed (or reduced) in the ROI, it can be allowed (or reduced) by A. O. during assessment proceedings:- Jute Corporation Of India Ltd. vs CIT (1991 (187) ITR 688 (SC)) National Thermal Power Co. Ltd. vs CIT (1998 (229) ITR 383 (SC) CIT vs Pruthvi Brokers Shareholder (P) Ltd. (ITA NO 3908 of 2010) 9. The ld. CIT(A) held that the above referred order Hon ble Mumbai High Court dismissed Revenue s appeal by holding that the appeal does not raise any substantial question of law. No principle are laid down in the said order of Hon ble Mumbai High Court. The same does not help the case of the assessee. 10. The ld CIT(A) h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 782/-. The net prior amount of Rs. 63,88,272/-, was already added by the assessee in the computation of income. Thus the finding of the first Appellate Authority that there is a double addition of Rs. 63,88,272/- is factually correct. As far as the balance amount is concerned the assessee's contention is that the amount has crystallized during the year, as the assessee came to know about these expenses only in the P. Y. 2008-09. The second limb of the argument of the assessee is that, which has been consistently following the policy of netting out prior period income with prior period expenses and the net effect was disclosed in the computation of income. It was also submitted that such a treatment was accepted by the Revenue for the AY 2007-08 and 2008-09. The First Appellate Authority has, on the principle of consistency, accepted the contentions of the assessee. We find no infirmity in the same. Thus ground no.3 and 4 are dismissed. 15. Having perused the issue, in the absence of any change in the factual content and the legal proposition we decline to interfere with the order of the ld CIT(A) which was rightly based on the earlier order of the Tribunal. 16. In th ..... 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