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2019 (1) TMI 401 - AT - Income TaxDepreciation on computer peripherals - @ 60% OR @ 15% - Held that:- The issue stood covered by the judgment of the Hon’ble Delhi High Court in the case of BSES Yamuna Power Limited [2010 (8) TMI 58 - DELHI HIGH COURT] Deduction u/s 10AA - computation mechanism of total income - Held that:- Deduction is to be allowed from the total income of the unit and not from the total income of the assessee under Chapter IV of the Act and not at the stage of total income under Chapter VI of the Act. Addition pertaining to research and development expenses - Revenue or capital expenditure - Held that:- Commissioner of Income Tax (A) has given a categorical finding that the training charges and annual subscription charges for CAD validation were revenue in nature. The inventory movement for R&D expenditure was in the nature of ‘Destructive Testing’ wherein the item/s were consumed and no inventory having commercial value was left. It has also been noted by the Ld. Commissioner of Income Tax (A) that no new asset had come into existence. The Ld. Sr. DR could not point out any infirmity in the findings of the Ld. Commissioner of Income Tax (A). We also note that while reaching his decision, the Ld. Commissioner of Income Tax (A) has placed reliance on the judgment of the Hon’ble Apex Court in the case of Empire Jute Co. (1980 (5) TMI 1 - SUPREME COURT). AO directed to allow depreciation @60% on the customization charges for ERP amounting to ₹ 5,34,683/- and software for tool management
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