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2018 (4) TMI 1274 - AT - Income TaxAddition on account of amount paid to Directors of the company as commission and exgratia - allowable expenditure u/s 36(1)(ii) as well as section 37(1) - CIT-A allowed the claim - Held that:- AO has not established that such commission or exgratia paid to directors, who are also shareholders, was payable as profits or dividend of the company, therefore, the same cannot be disallowed u/s 36(1)(ii) of the Act. There is no change in the present assessment year also, therefore, we are expected to follow the orders of earlier years, resultantly, we find no infirmity in the conclusion drawn by the Ld. CIT(A), consequently, this ground of the Revenue is dismissed. Addition on account of profit received on sale of car - as per AO section 50(1) clearly state that any receipt arising from the transfer of short term capital asset shall be deemed to be the capital gains - CIT-A deleted the addition - Held that:- The block of asset was perused by the Ld. CIT (A) and finally it was found that the assessee has deducted the sale value of the vehicle from the written down value of the concerned block of asset and duly complied with the provision of the Act and, therefore, claimed lesser depreciation on such block in the year. We find no infirmity in the conclusion drawn by the Ld. CIT (A) more specifically when the assessee correctly computed short term capital gain as Rs. Nil in the case of depreciable asset as per the provision of section 50 of the Act. - Decided against revenue
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