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2012 (10) TMI 392 - AT - Income TaxDis-allowance u/s 14A - assessee submitted that they have already offered an amount of Rs.1 lac for dis-allowance in pursuance of earlier ITAT’s orders - AO not accepting submissions of the assessee, disallowed Rs.18,41,918/- in terms of Rule 8D - Held that:- Indisputably, Rule 8D is not applicable in the year under consideration in view of the decision in Maxopp Investment Ltd (2011 (11) TMI 267 - DELHI HIGH COURT). Moreover in the assessee’s own case for the AYs 2001-02 and 2003-04, 2004-05, co-ordinate bench upheld the disallowance of Rs.1 lac. In the light of consistent view taken in these decisions in identical circumstances, and nothing contrary being brought on record by Revenue, dis-allowance of only Rs 1 lac is upheld. Dis-allowance of claim u/s 35D - expenses incurred on issue of shares and increase in authorized capital - denial on ground that benefit of S35D could be availed for a period of 10 successive years beginning with the previous year in which the business commences which have been lapsed - Held that:- Indisputably expenditure was incurred in the FY 1999-2000 and 2000-01, for issuing the shares. The assessee claimed 1/10th of these expenses since then and no disallowance has been made in any of the earlier years. There is no dispute that the entire expenditure is revenue in nature and was allowable in the year when it was incurred. Instead of claiming the entire expenditure in that year, the assessee deferred the amount, claiming only 1/10th in each of the subsequent 10 years. Hence, expenditure does not fall within the ambit of section 35D and needs to be allowed as revenue expenditure. Depreciation on computer peripherals - UPS - Held that:- Since it is part of the computer system, hence entitled to depreciation at the higher rate of 60 per cent. See BSES Rajdhani Powers Ltd (2010 (8) TMI 58 - DELHI HIGH COURT ) - Decided against Revenue
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