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2015 (5) TMI 541 - AT - Income TaxDisallowance of depreciation on computer accessories - assessee claimed depreciation @ 60%, which was restricted to 15% by the AO - CIT(A) deleted the disallowance - Held that:- The issue in question is squarely covered by various decisions of different High Court including the decision of Hon’ble Jurisdictional High Court of Delhi in the case of CIT Vs. BSES Rajdhani Powers Ltd. (2010 (8) TMI 58 - DELHI HIGH COURT), allowing depreciation on computer accessories and peripherals @ 60%. - Decided in favour of assessee. Interest on payment of excise duty on supplementary bills disallowed - CIT(A) allowed the claim by holding that the impugned amount was not penal in nature - Held that:- The interest represented the amount paid on account of excise duty on supplementary bills has not been disputed by the department. This was clearly compensatory in nature and could not be treated as penal in nature because the short fall in payment of excise duty was not qua the original bills but on account of raising of supplementary bills. We, therefore, do not find any reason to interfere with the order of ld. CIT(A).- Decided in favour of assessee. Disallowance of sales tax paid - CIT(A) deleted the disallowance - Held that:- The deposit of the sales-tax was on account of non-submission of form C and VAT D1 and, therefore, this could not be held to be penal in nature. We concur with the finding of ld. CIT(A). - Decided in favour of assessee. Disallowance of Fine and Penalty - CIT(A) deleted the disallowance - Held that:- AO has arbitrarily treated the above amount similar going by nomenclature of the head as fine & penalty and has disallowed the entire amount without looking into the details submitted by the assessee vide letter dated 26.11.2010 wherein the assessee has pointed out that the account constitutes sales Tax paid for Manesar pertaining to Financial Year 2003-2004 attributed to the Sales Tax payment raised on for non collection of Form -C, VA T C-4 etc. and the same be read as part of the explanation given in Grounds of Appeal No.4 above prayed to be deleted. Balance amount represents interest on supplementary bills on Excise Duty raised to its customer for unit 11/ Manesar plant. The amount was wrongly included under the head fine & penalty but should be a part of head Excise Duty and Sales Tax loss as contained in Grounds of Appeal NO.2 above - Decided in favour of assessee. Disallowance of expenses - CIT(A) deleted the disallowance - Held that:- This being purely ad hoc disallowance made by AO without referring to any specific item of expenditure has been rightly deleted by the ld. CIT(A) Decided in favour of assessee. Disallowance u/s 14A - Held that:- The main thrust of the assessee’s submission is with regard to the computation of correct disallowance and, therefore, we admit the paper book filed by assessee and restore the matter to the file of AO for de novo adjudication in accordance with law. - Decided in favour of assessee for statistical purposes.
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