TMI Blog2019 (1) TMI 1390X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year 2006-07 on the following grounds : 1. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of ₹ 3,04,80,562/- made by the A.O. on account of excess debit of discount in Profit Loss A/c. 2. On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of ₹ 2,88,751/- made by the A.O. on account of excess claim of depreciation on computer accessories. 2. The brief facts of the case are that the assessee filed return of income on 15th December, 2006 declaring total income at ₹ 11,61,16,414/- which was revised on 30th January, 2008, showing total income of ₹ 13,05,52,249/-. In the assessment proceedings, the Assessing Officer asked the assessee to reconcile the receipts as per profit and loss account and as per TDS Certificates. The assessee submitted reconciliation chart as under : Particulars Total Income as per ledger TDS forms deposited TDS @5.61% Air passage 36,54,53,749 2,07,11,980 2, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing officer noticed that the assessee has claimed depreciation on computer accessories and peripherals @ 60% whereas the Assessing Officer allowed depreciation @ 15%. Accordingly the Assessing Officer made addition to the extent of ₹ 2,88,751/- as excess depreciation claimed. 5. The assessee carried the matter in appeal before The learned CIT(A), who after considering the submissions of the assessee deleted both the additions. Aggrieved, the Revenue is in appeal before The ITAT. 6. The Ld. DR submitted that in the assessment proceedings, assessee was unable to reconcile the difference of commission received and commission paid. The CIT(A) has wrongly accepted the additional evidence and deleted the additions. The case laws cited by the CIT (A) are not applicable in the peculiar facts and circumstances of the case. In respect of excess depreciation claimed, he has relied on the order of the Assessing Officer. 7. On the other hand, learned AR reiterated the submissions made before the CIT (A) and relied on the same. It was further submitted that all the documents were provided before the Assessing Officer but he has not pointed out any mistakes therein. Books of acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ravel agents. It is also not disputed that in respect of commission which the assessee-airlines are required to pay to the travel agent is fixed by IATA. This commission is termed as standard commission. The IATA commission, that is, the standard commission payable by the assessee-airlines to travel agent prior to June 1, 1999 was 9 per cent and thereafter it dropped to 7 per cent. It is also an admitted fact that in so far as the assessee(s)-airline(s) which operate from India are concerned they are required to file a fare list with the Directorate General of Civil Aviation (in short DGCA ) for its approval. This fare which is called the DGCA fare is more often than not below the IATA fare. It is important to note for the period, under consideration, the assessee-airlines were prohibited from mentioning a fare below the IATA/DGCA approved fare on air tickets. What is of importance is that this is referred to as the published fare on which the commission fixed by IATA, that is, the standard commission is paid by the assessee-airlines to their respective travel agents. It is also undisputed that IATA in order to streamline the financial aspects of air transportation service provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charged to customers taking into account the basis price of the ticket, tax value, standard discount, trade discount and overriding commission. Further, agreements with important customers were also filed, which show that the passing on the discount/handling charges was as per agreements signed prior to the date of impugned order. Further, the appellant also filed copies of invoices issued to the customers, which reflect the details of tickets charges after adjusting the various types of discount. In my view, the above evidences are in the nature of 3rd party evidence, which were required to verify whether the appellant had claimed any excess discount in its P L account compared to the discount actually passed to its customers or not. These evidences remained in the possession of the AO for examination since January, 2009 for over a period of 6 years. Despite several reminders from this office, the Ld. AO could not make any adverse finding in respect of the evidences filed by the appellant before this office. Under the circumstances, in the interest of justice, the appeal is to be decided on the basis of available evidences on record and keeping in view the nature of business of ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e matter is now well settled with the decision of Hon'ble Delhi High Court in the case of CIT vs. BSES Yamuna Power Ltd. (2010) TIOL 636. Decision of several High Courts on this issue are in favour of the appellant, in which it has been held that UPS and printers are integral part of the computer system and entitled for depreciation @ 60%. In view of this, the Ground No.2 is allowed in favour of the appellant. 10. The above observations of the CIT(A) do not stand controverted on behalf of the Revenue. Therefore the above decision of learned CIT(A) does not require any interference. The additional evidences were sent to the Assessing Officer for remand report, but he did not send any remand report on the admissibility of additional evidences even after lapse of 6 years time. Therefore, the CIT(A), after giving several reminders, has rightly observed that the AO had nothing to say on the admissibility of additional evidences. Accordingly, CIT(A) has rightly deleted the additions after relying on various judicial precedents. As a result, the appeal of the Revenue deserves to be dismissed. 11. In the result, the appeal is dismissed. Order pronounced in the open court o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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