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2016 (1) TMI 1207 - ITAT DELHILower rate of depreciation on CCTV cameras - Held that:- CCTV cameras cannot function without computer, as to see the footage captured by CCTV camera you need a device in the shape of computer and thus, Computer is an integral part of CCTV camera and as such, is eligible for depreciation at the rate of 60% as prescribed for Computers under the Income Tax Act and accordingly, allow the depreciation @ 60% on the issue in dispute. This view is fully supported by the following case laws:- High Court of Delhi in the cases of CIT vs Citicorp Maruti Finance Ltd. (2010 (11) TMI 802 - Delhi High Court) and CIT vs Bonanza Portfolio Ltd. reported [2011 (8) TMI 1058 - DELHI HIGH COURT] Disallowance of expenditure on advertisement expenses - Held that:- The said expenditure was genuine one as the same was paid to Lion Club for advertisement in District Directory for good and effective medium for company's products and services, as is evident from the receipt filed at pages 165 of the paper book and delete the addition in dispute by relying on the judgment of Hon'ble High Court of Delhi in the case of CIT vs. Salora International Limited [2008 (8) TMI 138 - DELHI HIGH COURT] wherein it has been held that expenses incurred for advertisement and sales promotion and brand building are allowable expenses. Adhoc disallowance expenditure (i.e. 10% of the telephone expense and vehicle running and maintenance expenses) and (40% of the festival expenses) - Held that:- The disallowance of ₹ 1,24,003/- (10% of the telephone expenses and vehicle running and maintenance expenses) made by AO are without any basis and purely adhoc disallowances made for personal use or vouchers in the hands of the company which is not permissible in the eyes of law. I also note that the disallowance of ₹ 36,056/- (40% of the festival expenses) has been incurred exclusively for the business purpose and all the payments had been through bank with proper supporting vouchers, hence, both the additions in dispute are deleted Disallowing the donation and not allowing the deduction under section 80G - Held that:- Expenditure was paid for brand promotion and effective marketing of company's products and services, as is evident from the receipt filed at page 166 of the paper book. Hence, the addition in dispute is deleted. Also find that even otherwise the assessee is eligible for deduction under section 80G of the I.T. Act, 1961. This view is fully supported by the decision of the Hon'ble High Court of Delhi in the case of CIT vs. Salora International Limited [2008 (8) TMI 138 - DELHI HIGH COURT] wherein, it has been held that the expenses incurred for advertisement and sales promotion and brand building are allowable expenses.
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