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2013 (11) TMI 111 - AT - Income TaxUnrecognised gratuity fund u/s 37(1) – Held that:- The amount paid towards an unapproved gratuity fund can be deducted under sec. 37 of the I.T. Act, though not under sec. 36(1)(v) - even if any payment is made to an unapproved gratuity fund, it has to be allowed under sec. 37 - Binding judgement of Andhra Pradesh High Court in the case of Warner Hindusthan Ltd. (1983 (6) TMI 9 - ANDHRA PRADESH High Court) followed – Decided against Revenue. Disallowance of proportionate interest – Held that:- The assessee used its own non interest bearing funds and there is no cost to the assessee and it is a business decision taken by the assessee to make an investment in subsidiary company and that even if it is resulted in no income to the assessee - Following Sri Krishna Drugs Ltd. vs Department of Income tax [2013 (3) TMI 410 - ITAT HYDERABAD] – the notional interest cannot be disallowed on the reason that the assessee should have used its non interest bearing funds for the purpose of its own business purpose instead using borrowed funds for its business – Decided against Revenue. Depreciation on intangible assets u/s. 32(1)(ii) – Held that:- There is no nomenclature given in the books of account to the intangible rights acquired by the assessee is irrelevant for ascertaining the real nature of the transaction - The true nature of the assets which are acquired by the assessee is business and commercial rights which is nothing but goodwill on which the assessee is entitled for depreciation u/s. 32(1)(ii) of the Act - Following the judgement in Sri Krishna Drugs Ltd. vs Department of Income tax [2013 (3) TMI 410 - ITAT HYDERABAD] - Decided against Revenue.
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