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2017 (12) TMI 1698 - HC - Income TaxAmortization of cost paid towards the acquisition of wasting asset i.e. mining land/leasehold land u/s 37 - Whether ITAT has not legally erred in not allowing the claim? - HELD THAT:- We are in complete agreement with the view taken by the tribunal, therefore, first issue is required to be answered in favour of the department and against the assessee. Depreciation on license to use the land for mining - whether not covered by the definition of intangible asset u/s 2(11) ? - HELD THAT:- On a close scrutiny of Sub section 32 (ii) of the Income Tax Act in respect of depreciation of- (ii) know-how, patents, copyrights, trade marks, licences, franchises or any other business or commercial rights of similar nature, being intangible assets acquired on or after the 1st day of April, 1998, In our considered opinion, the rights which are given to the assessee are of commercial rights which are akin to license for mining. Expenditure incurred on computerization of Mines Department of the Government of Rajasthan - whether not qualify to be an expenditure expended “wholly and exclusively for the purpose of business” allowable u/s 37 ? - HELD THAT:- Taking into consideration the expenses which are done in view of decision in SA Builder’s case [2006 (12) TMI 82 - SUPREME COURT] and other judgments relied on the assessee, the issue is answered in favour of the assessee. Benefit of deduction u/s 80IA - sum received on account of minimum guarantee covenant under the agreement by holding the same to be not ”derived” from the business of power generation undertaking - HELD THAT:- regarding liquidated damages which are given are business losses which the undertaking ought to have done, if the machines which were delivered to the assessee would have performed very well, therefore, damages which were given for loss of business which was guaranteed by the supplier, ALPINE SOLVEX LTD. [2004 (11) TMI 58 - MADHYA PRADESH HIGH COURT] will not apply in the present case. This is not damages for compensation for business loss. In that view of the matter, this issue is also answered in favour of the assessee and against the department.
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