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2013 (8) TMI 480 - AT - Income TaxDisallowance of preliminary expenditure - expansion of its existing line of business - CIT confirmed disallowance - Held that:- business which was being set up by the assessee at Trivandrum was only an expansion of its existing line of business. - At both place, assessee was only developing software for educational purposes. Once expenditure was of revenue nature and was incurred for expanding existing line of business, in our view, it could have been allowed under Section 37 of the Act. No doubt, assessee's claim was only for one-third of total outgo. However, for this reason alone, a disallowance could not have been made - Decided in favour of assessee. Gratuity payment of M/s LIC - CIT disallowed the claim of the assessee - Held that:- There is no dispute that premium towards Gratuity Fund was paid by the assessee to LIC and the Gratuity Fund created by LIC by virtue of such payments, was not having the approval of CIT/CCIT under Section 36(1)(v) of the Act. Nevertheless, it is also a fact that assessee had filed an application before CIT for such approval on 12.4.2002. - unless there was strict compliance to Section 40A(7), an assessee could not claim for relief any amount or payment of premium to M/s LIC for any Group Gratuity Scheme - conditions mentioned in Section 36(1)(v) was held to be satisfied since the funds ultimately came back to a Gratuity Fund had the approval of the Commissioner. Here, the fate of the application of the assessee for approval is not known - If the assessee is able to produce the approval for Gratuity scheme, no doubt, it can claim deduction under Section 36(1)(v) of the Act and will not be fettered by constraints placed under Section 40A(7) of the Act - Decided in favour of assessee. Deduction u/s 10B - CIT disallowed deduction - Held that:- if the assessee is able to produce FIRC for whole of the receipts on account of export proceeds, it will be unfair to deny the claim made by it under Section 10B of the Act - Following decision of CIT v. Yokogawa India Ltd. [2011 (8) TMI 845 - Karnataka High Court] - Decided in favour of assessee. Depreciation on fixed asset - Relevant bills not produced - Held that:- assessee was unable to file any evidence in support of acquisition of fixed assets during previous years relevant to assessment years 2001-02 to 2004-05. Disallowance of claim of depreciation for the impugned assessment year has been done only with respect to the written down value of those assets on which assessee could not produce bills for acquisition in the earlier years - Decided against assessee.
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