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2018 (10) TMI 1991 - AT - Income TaxTP Adjustment - transaction of payment of management services fees - HELD THAT:- As decided in own case [2016 (8) TMI 1433 - ITAT KOLKATA] study made by the assessee with regard to payment of management service fees which has been accepted by the revenue in the subsequent years, should be applied for the Asst Year 2008-09 also to put an end to this controversy. Hence in order to meet the ends of justice, we direct the ld TPO/ ld AO accordingly - Decided in favour of assessee. Depreciation on intellectual property assets - HELD THAT:- As decided in own case [2016 (8) TMI 1433 - ITAT KOLKATA] main emphasis for disallowance is only on the point that the intellectual properties is not approved by any government or any competent authority. Nowhere the income tax act mandates the registration of the intellectual properties for the purpose of granting depreciation u/s 32 of the Act. Getting the intellectual properties registered is within the domain of the assessee and it only offers protection to the assessee from preventing other parties to use the same. The revenue cannot thrust the mandate of registration of the same and mere non-registration of the same does not make the transaction ingenuine or sham. Hence the version of the revenue that IP should be certified by the government authority and it does not fall within the assets specified in IT Rules is without any basis and not tenable. Decided in favour of assessee. Disallowance of provision for stock obsolescence under normal provisions - HELD THAT:- As in assessee’s own case by its consolidated order [2017 (9) TMI 1648 - ITAT KOLKATA] as held that provision made for obsolete stocks in the sum of Rs 10,00,472/- is squarely allowable as deduction as a business loss under normal provisions of the Act.Decided in favour of assessee. Disallowance of provision for warranty and allowability of actual warranty expenditure under normal provisions - HELD THAT:- As in assessee’s own case by its consolidated order [2017 (9) TMI 1648 - ITAT KOLKATA] held that entire provision for warranty would be squarely allowed as deduction in the year under appeal under the normal provisions of the Act. Disallowance of provision for leave encashment - HELD THAT:- It is noted that the issue raised was decided by this Tribunal in assessee’s own case by its consolidated order [2016 (8) TMI 1433 - ITAT KOLKATA] as held that as assessee stated that the deduction on account of provision for leave encashment was made on the basis of the judgment of Hon'ble jurisdictional High Court in the case of Exide Industries Ltd [2007 (6) TMI 175 - CALCUTTA HIGH COURT] but he fairly conceded that subsequently Hon'ble Supreme Court has stayed this judgment of Hon'ble jurisdictional High Court [2009 (5) TMI 894 - SC ORDER] assessee fairly stated that let Hon'ble Supreme Court decide the issue and by that time the matter can be remitted back to the file of ld AO for fresh adjudication in terms of the decision of Hon'ble Supreme Court - Ground raised by the assessee is allowed for statistical purposes. Addition made on account of interest on MSMED under book profit - HELD THAT:- As decided by this Tribunal in assessee’s own case by its consolidated order [2017 (9) TMI 1648 - ITAT KOLKATA] as held that provision for interest payable to suppliers registered under MSMED Act, 2006 is only an ascertained liability and need not be added back to the book profits computed u/s 115JB.Ground raised by the assessee is allowed. Addition made on account of provision for warranty and deduction of actual warranty expenditure under book profit - HELD THAT:- As decided by this Tribunal in assessee’s own case by its consolidated order [2017 (9) TMI 1648 - ITAT KOLKATA] held that provision for warranty would be allowed as deduction under normal provisions of the Act as well as while computing book profits u/s 115JB of the Act. Accordingly, the Grounds raised by the assessee allowed. Provision for stock obsolescence under book profit - AO had disallowed the same on the ground that it is an unascertained liability and accordingly to be added back while computing book profits u/s 115JB - HELD THAT:- As in assessee’s own case by its consolidated order [2017 (9) TMI 1648 - ITAT KOLKATA] wherein AR fairly conceded for the addition u/s 115JB of the Act.Ground raised by the assessee is dismissed.
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