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2016 (4) TMI 1320 - AT - Income TaxAmount of sales tax subsidy - capital receipt - grant of depreciation on the reduced value of fixed assets - Held that:- In the present case, undisputedly and admittedly the AO accepted the treatment given by the assessee to the sales tax subsidy as capital receipt in A.Ys 2005-06 and 2006-07 and for A.Ys 2007-08 and 2008-09. AO has not brought out any allegation or facts to allege that that the income does not reflect true factual income of the assessee. In this situation, we are inclined to hold that the authorities below flaunted the Rule of consistency without any justified cause or basis and in view of the proposition laid down by the Hon'ble Supreme Court in the case of CIT Vs. Woodward [2009 (4) TMI 4 - SUPREME COURT] a system of accounting following by the assessee and accepted by the Revenue during the earlier years, consistency cannot be disturbed without any reasonable cause or justified reasoning. Addition u/s 14A - Held that:- Disallowance can be made in the situation when no exempt income was earned by the assessee in the relevant A.Y and since in the present case the AO as well as the ld. CIT(A) has not brought out any allegation or fact to allege or disturb or doubt the genuinety of the expenditure incurred by the assessee, therefore, no disallowance can be made u/s 14A of the Act in A.Y 2007-08 u/s 14A r.w.r 8D of the Rules for A.Y 2008-09. Respectfully following the decision of the Hon'ble High Court of Delhi in the case of Chem Invest Ltd [2009 (8) TMI 126 - ITAT DELHI-B] Depreciation on computer peripherals at an estimated basis - Held that:- Depreciation of computers peripherals is available @ 60%, Relying on the lead case being CIT Vs. BSES Yamuna Power [2010 (8) TMI 58 - DELHI HIGH COURT] Adhoc disallowance @ 10% out of foreign travelling expenses - Held that:- When the assessee went in first appeal, the ld. CIT(A) relying upon the judgment of the Hon'ble Jurisdictional High Court in the case of CIT Vs. Kulwant Rai [2007 (2) TMI 185 - DELHI HIGH COURT] deleted the addition by holding that there was no basis to make the addition. Accordingly, finding no merits in the ground of appeal raised by the Revenue,
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