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2016 (4) TMI 1314 - AT - Income TaxDepreciation on life saving equipments - @15% OR 40% - Held that:- As the machines acquired by the assessee though may not be identical to the machinery mentioned in the Income Tax Rules specifying the rate of depreciation in Part-III (xia) (d), (n), they appear to be similar in nature. Since depreciation is a beneficial provision to the assessee, it has to be broadly viewed and applied beneficially to the assessee. Moreover these equipments either become obsolete in a short while or have short life span. Therefore, we hereby direct the learned Assessing Officer to allow the claim of depreciation @ 40% on the cost of acquisition of the above mentioned equipments considering it as life saving equipments as provided under the Rules and accordingly delete the addition made - Decided in favour of assessee Addition on belated payment of employees’ contribution to ESI - Held that:- Now it is an admitted fact that by the various decisions of higher judiciary the remittance of employees / employers contribution of PF/ESI etc., if remitted before the due date of filing the return disallowance cannot be made by invoking the provisions of section 43B of the Act. Therefore, we hereby direct the learned Assessing Officer to verify whether these payments are made before the due date of filing of return, and if found so, delete the disallowance made by invoking the provisions of section 43B of the Act. Disallowance u/s 37 being marketing expenses - Held that:- ere is no prohibition in the Act to make payments to Doctors for the services rendered by them. In the case of the assessee, gifts were given to Doctors by way of gold coins in appreciation to their services. It can be construed as the fees paid in kind for the services rendered by the Doctors in the hospital. The presumption of the learned Assessing Officer that these payments are made to Doctors for canvassing patients cannot be accepted without any cogent evidence. Further the Revenue has not quantified the amount for which invoices, bills are not available for the expenditure incurred and the nature of unexplained expenses. Hence, it appears to be a passing remark - we hereby direct the learned Assessing Officer to delete the addition made on account of disallowance Disallowance being expenses incurred on consumables and on repairs under section 40A(3) - Held that:- Considering the total turnover of the assessee for the relevant assessment year 2012-13 of ₹ 39.00 crores approximately, we find this claim of expenditure to be very negligible. Therefore, in the interest of justice, we hereby direct the learned Assessing Officer to delete the disallowance - Assessee appeal allowed.
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