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2011 (7) TMI 537 - AT - Income TaxDisallowances - Prior period expenses - rectification order under sec. 154 - Held that:- It is well settled that merely because an expense relates to a transaction of an earlier year, it does not become a liability payable in the earlier year, unless it can be said that the liability was determined and crystallized in that year on the basis of maintaining accounts on the mercantile method - In each case, where the accounts are maintained on the mercantile basis, it has to be found in respect of any claim, whether such liability was crystallized and quantified during the relevant previous year so as to be required to be adjusted in the books of account of that previous year - If any liability, though relating to the earlier year, depends upon making a payment and its acceptance by the assessee and such liability has been actually claimed and paid in the later years, it cannot be disallowed as a deduction merely on the basis the accounts are maintained on mercantile basis and is related to a transaction of the earlier year - Therefore, hold that allowability or otherwise of prior period expenses claimed in the profit and loss account is a debatable matter and, therefore, it does not come within the purview of sec. 154 - Decided in favour of assessee. Excess depreciation claimed on computers and computer related items - Held that:- As decided in the case of Containers Corp. Ltd. (2009 (2) TMI 499 - ITAT DELHI) printers, scanners and other peripherals are part and parcel of computer and are entitled for depreciation @ 60% - The Hon'ble Delhi High Court has also upheld the order of the Tribunal allowing depreciation @ 60% on computer accessories and peripherals in the case of CIT vs. BSES Rajdhani Powers Ltd [2010 (8) TMI 58 - DELHI HIGH COURT]- The question as to whether the computer accessories and peripherals are allowable for depreciation at higher rate of 60% is a subject matter of debate and deliberation and cannot be said to be an error apparent on record so as to rectify the matter u/s 154 of the Act - Decided in favour of assesseee.
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