ANIRUDDHA BOSE,J. - (1.) This appeal involves assessments pertaining to two assessment years being 2007-08 and 2008-09. We admit the appeal so far as the assessment year 2008-09 is concerned on the following point, which in our opinion involves substantial question of law:- "Whether the Tribunal was right in invalidating the decision of the assessing officer who disallowed certain expenditure claimed by the assessee under section 14A of the Income Tax Act, 1961 in relation to income which did not form part of the total income chargeable to tax was proper in a case where the assessee's stand is that there was no satisfaction on the part of the assessing officer recorded in the assessment order that the correctness of the claim of the assessee was not proper ?"
(2.) We, however, do not find any reason to interfere with the Tribunal's decision on the same issue in relation to assessment year 2007-08, when Rule 8D of the Income Tax Rules 1962 had not become operational and the Tribunal found on fact that the expenditure already disallowed was sufficient.
(3.) Next point urged on behalf of the Revenue is in respect of the decision of the Tribunal to apply the block assets concept in respect of certain properties of the assessee. The assessing officer as well as the First Appellate authority had disallowed the depreciation claim of the assessee on that particular asset on the ground that the said asset was in use any more. Both the statutory authorities thus treated that particular property for the purpose of depreciation in isolation. But Tribunal opined that block assets concept ought to be applied in terms of section 32 of the Income Tax Act, 1961 in case of the assessee.;