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2018 (3) TMI 1865 - AT - Income TaxDisallowance of Corporate Social Responsibility expenses (‘CSR’) - HELD THAT:- We find that a view has already been taken by the Tribunal in assessee’s own case for immediately preceding AY [2017 (4) TMI 405 - ITAT MUMBAI] where the Tribunal, not convinced with assessee’s explanation, upheld the stand of revenue in disallowing the expenditure incurred on corporate social responsibility. - Decided against assessee. Addition of provision of slow moving / obsolete stock to the book profit of the Appellant while computing the tax liability u/s 115JB - HELD THAT:- Similar issue arose in assessee’s own case for AY 2009-10 [2017 (4) TMI 405 - ITAT MUMBAI] where the matter has been remanded back by the Tribunal to the Ld. AO with certain directions. However, the Ld. AR made an attempt to distinguish the facts in the impugned AY by submitting that the assessee has written off the obsolete stock in the books, the complete details of which are available on record and therefore, the same is allowable to the assessee in terms of several judicial pronouncements. We find the matter to be inter-connected one. Therefore, with a view to maintain consistency in the treatment thereof, without delving much deeper into the issue, we deem it fit to restore the matter back to the file of Ld. AO on similar lines and adopt a consistent approach. Resultantly, this ground stands allowed for statistical purposes. Amortization / Depreciation claimed on Terminal Rights - rate of depreciation on certain intangible assets acquired by the assessee - HELD THAT:- Assessee has acquired Terminal Rights for 30 years and the expenditure is clearly a capital in nature and an intangible asset. The genuineness of the same is also not in dispute and consequently, the assessee is entitled to claim depreciation against the same. The only dispute is with regard to rate at which depreciation is allowable to the assessee. No doubt, the assessee is required to compute its income as per the provisions of Income Tax Act, 1961 and the assessee, is entitled for depreciation on capital assets in terms of Section 32 read with Rule 5 of Income Tax Rules at rates prescribed in Appendix-1 to Income Tax Rules, 1962. Upon perusal of the same, we find that the prescribed rate of depreciation on Intangible Assets being knowhow, Patents, Copyrights, trademarks, Licenses, franchises or any other business or commercial rights of similar nature is 25%, which assessee is eligible to claim. - Decided in favour of assessee.
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