Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (3) TMI 1418 - ITAT CHENNAINature of expenses - Service charges/ Technical advisory and management fee - services availed from M/s. United Breweries Ltd. etc are technical knowhow etc in its nature, where the benefits are enduring in nature and hence constitutes capital expenditure - AO treated these expenses as capital expenditure and disallowed from the revenue expenditure and allowed depreciation @ 25% as applicable to intangible assets - HELD THAT:- The Tribunal has considered the issue in appeal [2013 (2) TMI 716 - ITAT CHENNAI] for the assessment year 2008-09 and decided the issue in favour of the assessee. Depreciation on intangible assets - HELD THAT:- The present assessment years under consideration i.e. assessment years 2003-04 and 2010-11since the facts are identical and the issue is recurring one, the ld. CIT(A), by following the above decisions of the Tribunal allowed the depreciation claim of the assessee for the assessment years 2003-04 and 2010-11. CIT(A), while deciding the issue has considered the entire issue of depreciation and also extracted the order of the ld. CIT(A) for the assessment year 2008-09 [2013 (2) TMI 716 - ITAT CHENNAI] Allowability of sales promotion expenses - HELD THAT:- CIT(A) after considering the entire facts of the case, came to the conclusion that there is possibility of unreasonableness and excessive claim and disallowed 7.5% of total sales promotional expenses of Rs. 14,03,35,927/- and allowed only Rs. 12,39,29,825/- [ Rs. 13,44,55,019 – Rs. 1,05,25,194]. We find that the order passed by the CIT(A) is just fair and reasonable by considering all relevant materials and we find no infirmity in the order passed by the ld. CIT(A). Accordingly, the ground raised by the Revenue is dismissed. Possibility of excess claim to the extent of 7.5% in sales promotion expenses claimed by the assessee - HELD THAT:- During the hearing of the appeal assessee has not able to controvert the findings of the ld. CIT(A) towards the disallowance except stating that the entire claim of the assessee ought to have been allowed by the ld. CIT(A). We find that, after examining all the details filed by the assessee, CIT(A) came to a reasonable conclusion that the claim of the assessee is excessive to the extent of 7.5%. We find no reason to interfere with the order passed by the ld. CIT(A) and accordingly, the ground raised by the assessee is dismissed.
|