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2013 (12) TMI 779 - AT - Income TaxDepreciation on dealership network - Held that:- Following assessee’s own case for A.Y. 2007-08 - The claim of the assessee for depreciation on dealership network is allowed by the Tribunal - The consideration paid by the assessee for the purpose of enhancing its network in the field of money transaction business by acquiring rights or infrastructure or other advantages attached to the marketing network - The same was in the nature of intangible asset as contemplated u/s 32(1)(ii) of the Act - The assessee was entitled to depreciation thereon @25% - Decided against Revenue. Depreciation on computer peripherals - Held that:- Following CIT vs. BSES Yamuna Power Ltd. [2010 (8) TMI 58 - DELHI HIGH COURT] - Computer accessories and peripherals such as printers, scanners, server etc. very much form an integral part of the computer system and consequently they are eligible for depreciation at higher rate of 60% - Decided against Revenue. Expenses on exempt income - Interest and other expense - Held that:- Following assessee’s own case for A.Y. 2006-07 - Own funds were available with the assessee company in the form of share capital and reserves at the relevant time which was sufficient to made the investment in the equity shares. Other expenses - Held that:- As per Rule 8D - The disallowance in respect of other expenses is sustained - Partly allowed in favour of assessee. Rectification of mistake - Held that:- Following CIT vs. Sakseria Cotton Mills Ltd. [1979 (2) TMI 17 - BOMBAY High Court] - The issue relating to allowability of deduction on account of provision for diminution in the value of investment while computing the book profit u/s 115JB of the Act was not the subject matter of appeal before the Tribunal - No direction were given by the Tribunal on this issue while restoring the matter to the file of the A.O. - There was no mistake in the order of the A.O. passed u/s 143(3) r.w.s. 254 of the Act on 30-12-2008 in allowing the deduction on account of provision for diminution in the value of investment calling for any rectification u/s 154 of the Act - Such mistake, was in the order originally passed by the A.O. u/s 143(3) - The rectification made by the A.O. on this issue to the order passed u/s 143(3) r.w.s. 254 of the Act by an order dated 19-8-2010 passed u/s 154 of the Act thus was not permissible - Decided in favour of assessee.
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