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2017 (5) TMI 59 - AT - Income TaxStock Appreciation right expenses - Difference between purchase price of Stock Appreciation Right (‘SAR’) and the sale price of such SAR at the time of exercise by the employees - capital loss not allowable business deduction - Held that:- Referring to the order of ITAT passed in the case of M/s Religare Commodities Ltd [2017 (1) TMI 783 - ITAT DELHI ] held that Stock Appreciation right expenses claimed by the appellant is not in a capital expenses, but revenue expenditure and ascertained liability therefore it is allowable expenses. In the result the disallowance made by the Ld. and assessing officer and enhancement made to that taxable income of the appellant by Ld. 1 st appellate authority is held to be erroneous and therefore set aside - Decided in favour of assessee Disallowance of payment under section 40A(2)(b) - Held that:- As the assessee contested for the first time that provisions of section 40A(2)(b) was not applicable in the case of the assessee as entire share capital of the company was held by REL. Since this fact has not been verified either by the Ld. AO or by the Ld. CIT-A, we feel it appropriate to restore the issue to the file of the Assessing Officer to verify the applicability of section 40A(2)(b) of the Act and decide the issue afresh in accordance with law. Not taking on record Memorandum of Understanding holding that the same being in the nature of additional evidence - Held that:- As we find that this Memorandum of Understanding goes to the root of the matter hence, the Assessing Officer is directed to also consider this Memorandum of Understanding while adjudicating the issue no. 3. This ground of appeal is allowed. Depreciation on UPS - @ 15% or 60% - Held that:- The Hon’ble High Court in the case of BSES Rajdhani Powers Ltd. (2010 (8) TMI 58 - DELHI HIGH COURT ) held that the computer accessories are peripherals such as, scanners and server etc. form an integral part of the computer system and the same cannot be used without the computer. Thus, they are entitled to depreciation at the higher rate of 60%.
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