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2010 (10) TMI 738 - AT - Income TaxDepreciation on intangible assets - held that:- the assessee was entitled to claim depreciation on 'business information' under the category of 'other identifiable intangibles [goodwill] As regard to the CIT(A)'s stand in directing the AO to exclude the cost of scraps from the total turnover for the purposes of deduction u/s 80HHC of the Act - It is clear that the raw material is not actually sold. The amount is credited in case the sub-contractor supplies less quantity of manufactured product and the account of sub-contractor is debited. This is actually a recovery representing the deficit on account of receipt of less quantity of manufactured parts. Looking to the definition of the 'turnover' as contained in the Sales-tax Act, it cannot be treated as sales. As regards the 90% of fees received from Robert Bosch from the business profits for the purpose of deduction u/s 80HHC of the Act - , the Hon'ble High Court of Bombay in the case of CIT v. Bangalore clothing Co. (2003 -TMI - 12071 - BOMBAY High Court ) on the issue of computation of special deduction u/s 80HHC and effect of Explanation (baa), found the labour charges to be part of operational income and not to be excluded under Explanation (baa) to section 80HHC. The Explanation (baa) to section 80HHC of the Act was inserted by the Finance No.2) Act, 1991 with effect from 1.4.2 - Decided in favour of assessee. As regard to the CIT(A)'s stand in directing the AO to exclude 90% of net interest receipts from the business profits for the purposes of deduction u/s 80HHC of the Act - The Ld. Delhi High Court in the case of Shri Ram Honda Power Equip (2007 -TMI - 2891 - HIGH COURT, DELHI) has held that the word 'interest' in clause (baa) of Explanation connotes net interest and not gross interest. If the AO has treated the interest receipts as business income, then deduction in terms of Explanation (baa) should be with reference to net interest - Decided in favour of assessee.
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