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2012 (8) TMI 62 - ITAT, DELHIDisallowance u/s 14A - CIT(A)restored the issue back to the file of the AO for recalculation - Held that:- Neither the assessee submitted any computation for disallowance in terms of section 14A nor the AO pinpointed any specific item of expenditure incurred for earning the dividend income. The CIT(A) merely followed the aforesaid decision in Godrej Boyce Mfg. Co. Ltd. (2010 (8) TMI 77 - BOMBAY HIGH COURT ) and restored the matter to the file of the AO. However, the extent provisions of section 251 do not bestow any power on the CIT(A) for setting aside the issue in an assessment - the order passed by the CIT(A) is cryptic and grossly violative of one of the facets of the rules of natural justice that every judicial/quasi- judicial body/authority must pass reasoned order - Section 14A remained an empty shell until the introduction of Rule 8D on 24.03.2008 - the impugned order suffers from lack of reasoning and is not a speaking order on the issue restore the mater to CIT(A) file for deciding the issue, afresh - in favour of revenue. Claim of depreciation on UPS @60% by assessee - @15% as allowed by the AO - Held that:- As decided in ITO vs.v.Omni Globe Information Technologies India (P.) Ltd.[2010 (4) TMI 769 - ITAT, DELHI ] that if peripherals such as printers, scanners and servers etc. form integral part of the computer system, UPS will also be an integral part of the computer system and cannot be used without the computer, entitled for deduction of depreciation at the rate of 60 per cent - against revenue. Disallowance of legal and professional charges - AO treated the amount capital in nature while the ld. CIT(A) reduced the disallowance by 50% - Held that:- CIT(A) without analyzing the basis of allocation of each of the job undertaken by M/s Wadia Gandy & Co. vis-à-vis assessee and other entities, attributed 50% of the amount in relation to merger of the company as capital in nature. The CIT(A) nowhere adduced the basis of such allocation nor the DR could throw any light on this aspect - CIT(A) did not make elaborate discussion on the scope of study undertaken by the consultants nor the ld. DR submitted a copy of the agreement with consultants, if any - complete facts in relation to scope of study are not available restore the matter to his file for deciding the issue. Dis allowance of prior period expenditure - CIT(A)accepted the submissions of the assessee placed before through certain additional documents - Held that:- Once the assessee invokes Rule 46A and prays for admission of additional evidence before the CIT (A), then the procedure prescribed in the said rule has to be scrupulously followed - as in the instant case, there is nothing in the impugned order of the CIT (A) to suggest as to whether or not any opportunity was allowed to the AO before concluding on the issue nor the CIT(A) refers to any additional evidence in terms of rule 46A of the IT Rules,1962 it is necessary to vacate the findings of the CIT(A) and restore the issue back with the directions to follow the mandate in terms of Rule 46A - in favour of revenue.
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