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2017 (4) TMI 920 - HC - Income TaxDisallowance of claim of depreciation on non compete fees - Held that:- Considering the fact that the similar claim on non compete fees was allowed in the earlier years and same has been accepted by the Revenue in essence of any change in facts, the assessee is rightly held to be entitled to the depreciation on non compete fees. In the recent decision in the case of Commissioner of Income Tax, Delhi IV vs. M/s. Dalamia Promoters & Devels (P) Ltd [2015 (9) TMI 1247 - SUPREME COURT] has observed and held that Rule of consistency does demand that there being no change in circumstances, the similar treatment is required to be given as per previous years. - Decided in favour of assessee Disallowance of claim of reduction from stock of packing material and from stock of finished goods - AO disallowed the said claim due to failure on the part of the assessee to produce requisite evidence in respect of its claim of reduction of closing stock - Held that:- As found that the assessee has followed due procedure, maintained the list of packaging material contains clear description of the goods that were considered to be not usable and also the list for damaged stock clearly show the material, quantity and description of the various items which were lying at different godowns across the country which were considered to be damaged and accordingly the statement for provision for damage was prepared and on that basis the goods have actually been reduced from the closing stock of finished goods, it cannot be said that the learned CIT(A) as well as learned Tribunal has committed any error in deleting the disallowance of claim - Decided in favour of assessee Disallowance of claim of foreign travel expenses - Assessee could not furnish the details to substantiate the nature of expenses incurred whether they were for personal or business purpose - Held that:- The assessee has submitted the complete details of employees who have travelled abroad, duration of visit, countries visit, nature and amount of expenses and purpose of travel. The learned CIT(A) also observed that even otherwise considering annual turnover of more than ₹ 195 crores, the foreign travel expenditure of ₹ 3,20,467/only was required to be allowed, more particularly, when the same was duly supported by documentary evidence. The aforesaid has been confirmed by the learned Tribunal. Considering the facts and circumstances of the case, we are of the opinion that the learned Tribunal as well as learned CIT(A) rightly deleted the disallowance - Decided in favour of assessee Disallowance of web designing charges, trade mark expenses and survey expenses - AO disallowed the said expenditure by treating the same as capital expenditure - Held that:- Delhi High Court in the case of CIT vs. Indian Visit Com Pvt Ltd (2008 (9) TMI 8 - DELHI HIGH COURT ) held that in case of expenditure on website, there is no change in the fixed assets of the assessee and no asset has been created but it is a tool for facilitating the business of the assessee and therefore, held expenditure of website to be of revenue nature. - Decided in favour of assessee Trade mark expenses, also and following decision of the Hon'ble Supreme Court in the case of Finlay Mills Ltd (1951 (10) TMI 1 - SUPREME Court) the learned CIT(A) held that the trade mark expenses is of revenue in nature as the same does not created any assets or it does not result into any advantage of enduring nature.- Decided in favour of assessee Survey expenses looking to the nature of the business of the assessee to keep their products constantly updated keeping in view the customer preferences and the market demand and requirement trends, such survey is required. Therefore, the learned Tribunal correctly held survey expenses as revenue in nature.- Decided in favour of assessee TDS u/s 194C - disallowance u/s 40(a)(ia) incurred on account of gift article purchased for sales promotion - Held that:- Considering the fact that merely because the logo of the company was added on the gift article which was to permit its business, it cannot be said that the purchase of goods article was a work contract for which TDS was required to be deducted. Logo was required only for the purpose of identification of the company. Therefore, the same is rightly held to be allowable as business expenditure. We are in complete agreement with the view taken by the learned CIT(A) as also learned Tribunal.- Decided in favour of assessee
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