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2013 (6) TMI 382 - ITAT MUMBAIClaim u/s.80IA denied in respect of eligible undertakings viz., Earth Stations, Internet and Inmarsat M&B services - whether appellants method of calculating the deduction u/s.80IA totally unacceptable? - Held that:- Neither the AO nor the FAA had deliberated upon the allowabililty of section 80IA with regard to internet services. Assessee fairly conceded that issue of allowing deduction with relating to internet services was never decided by any of the lower authorities considering the amended provisions. In these circumstances in the interest of justice matter should be restored back to the file of the FAA for passing fresh order keeping in mind the amended provisions of the section 80IA. In favour of assessee for statistical purposes. Prior periods expenditure disallowed - travelling, professional fees, audit fees, printing and advertisement expenses, medical and HRA arrears, municipal tax etc., as well as repairs and maintenance - Held that:- From the records available it is found that out of prior period expenditure 2.18 crores bill amounting to Rs. 69.20 lakhs (49.206 lakhs + 19.94 lakhs) were received before the due date of approval of accounts. As the liability crystallisation took place during the year under consideration, same should be allowed. Partly in favour of assessee. Depreciation on undersea ‘FLAG’ cable system - Held that:- As it is well settled position of the law that the eligibility to claim depreciation u/s.32 is governed by the factum of beneficial ownership of the depreciable assets notwithstanding the absence of legal title thereto, accordingly the appellant is entitled to claim depreciation on the value of the indefeasible rights and such claim of the appellant has been wrongly denied by the AO. As the revenue has been allowing depreciation in the subsequent year and principles of consistency should be followed as per the ratio of the judgment of CIT Vs. Dalmia Promoters P. Ltd. (2006 (1) TMI 57 - DELHI High Court). As DR was not able to factually contradict that the claim of the assessee that it is a Member of International Consortium that owned the cables and that it is a part owner, with the right to transfer its share to other and also a right to share the sale proceed on decommissioning of the system, in proportion to the rights held by it depreciation is to be allowed. In favour of assessee.
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