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2019 (12) TMI 1518 - AT - Income TaxDeprecation on purchase of goodwill or any other business or commercial rights in view of the amendment of Section 32(1)(ii) - Whether rights acquired for acquisition of Customer Contracts falls within the expression “any other business or commercial rights of similar nature” as defined in Explanation 3 to Section 32(1)(ii)? - HELD THAT:- In view of the above factual aspects and legal position and the co-ordinate Bench decision in assessee’s own case in . [2018 (8) TMI 2049 - ITAT MUMBAI] for AY 2012-13, we are of the view that the contracts which are part of Slump sale agreement i.e. business purchase agreement form part of intangible assets in term of explanation 32(1)(ii) of the Act. Hence, we find no infirmity in the order of CIT(A) allowing the claim of depreciation of the assessee, we confirm the order of CIT(A). Addition made while computing book profit u/s 115JB - HELD THAT:- Assessee has made claim of exclusion of amortization of intangible assets, including goodwill, fee paid to consultants and expenses incurred for acquisition of business of DC Gupta construction Pvt. Ltd while computing book profit under section 115JB of the Act. We noted that the AO made addition in the book profit of the assessee but the facts are that the provisions of Sec. 115JB of the Act requires that net profit should be prepared in accordance with Part II and III of Schedule VI to Companies Act. In the instant case, because of specific accounting treatment followed by the assessee pursuant to High Court order, the financial statements are not showing true and fair view and are contrary to Accounting Standards, provisions of Companies Act and Schedule VI thereto. In the instant case, what has been done pursuant to High Court scheme is not affect the accounting to be made as per companies Act while arriving at the true profit as per Part II of Schedule VI and hence, the assessee is entitled to make necessary adjustment in order to incorporate the impact of the said observation to the Profit as shown in the profit & Loss account to arrive at correct Book Profit under section 115JB of the Act. Hence, the CIT(A) has rightly deleted the addition made by the AO. This ground of Revenue’s appeal is dismissed. Reimbursement of expenses - AO disallowed the claim of reimbursement expenses by stating that the assessee has not filed the details including bills and vouchers by observing - HELD THAT:- We noted that the assessee has filed details of reimbursement of expenses and this issue is covered by the decision in the case of Vazirani Lani Developers Pvt. Ltd. [2009 (2) TMI 904 - BOMBAY HIGH COURT]. Hence, we find no infirmity in the order of CIT(A) and the same is confirmed. This issue of Revenue’s appeal is dismissed.
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