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2015 (6) TMI 279 - AT - Income TaxDisallowance of Management Fee - CIT(A) deleted the addition - Held that:- Appellant has submitted detailed working of the basis of allocation of expenditure bet n the appellant and SOIPL and has also adequately explained additional queries raised by my office on basis of allocation adopted by the appellant under all possible odd situations. Detailed note to substantiate that the said cost recharge has not resulted in any loss to the Revenue has also been submitted by the Appellant.On the contrary, the AO has made its allegations merely on theories and nothing has been brought on record to show that the management fee is not related to the business of the appellant or has not actually been incurred. Thus, the addition made by the AO to the income of the appellant by disallowing the management expenditure reducing the amount of returned loss is deleted correctly by CIT(A) - Decided in favour of assessee. Disallowance of advertisement expenditure - CIT(A) deleted the addition - Held that:- No merit in allegation of the AO that merely as this is the first year of operation of the Company the advertisement expenditure would render enduring benefit to the company. Moreover, the AO has failed to define the period over which such benefit is expected to be incurred. Thus, placing reliance on the judicial precedents specifically the decision jurisdictional Delhi High Court in case of Salora International (2008 (8) TMI 138 - DELHI HIGH COURT ) and Brilliant Tutorials P Ltd (2007 (1) TMI 147 - MADRAS High Court ) which is on similar fact pattern, the claim of advertisement expenditure made by the appellant is correct and the addition made by the AO is deleted - Decided in favour of assessee. Disallowance of filing fee - Held that:- CIT(A) has allowed the relief on the basis of submissions of the assessee that these expense were inadvertently reported in audit report and actually these related to financial year 2008-09. We do not find any infirmity in his findings - Decided against revenue. Depreciation on accessories and peripherals of computer - Held that:- The accessories and peripherals of computer provide input processing, storage and various output devices. The output devices such as printers, scanner etc. are computer peripherals and form essential parts of the computer. These output devices cannot work in isolation and also working on computer system without an output device such as printer would be futile. In view of the same, the claim of depreciation at 60 percent on printer, scanner, and other computer peripherals by the appellant seems justified. The same position has been accepted by various Tribunals wherein it has been held that computer peripherals such as routers, switches, printers etc are eligible for depreciation at the rate of 60 percent. In view of the same, the claim of depreciation by the appellant is correct and the addition made by the AO is deleted. - Decided in favour of assessee.
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