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2019 (2) TMI 1511 - AT - Income TaxAddition on account of legal and professional fees paid to Accenture Service Pvt. Ltd. - HELD THAT:- CIT(A) is not justified in uphelding the disallowance being the professional fees paid to M/s. Accenture Services Private Limited as capital in nature. The above ground raised by the assessee is accordingly allowed. Disallowance of government fee - the said expenditure is capital in nature being preoperative expenses of a project, despite the fact that the said expenditure incurred by the assessee is of revenue nature - HELD THAT:- It is the submission of the assessee that since the assessee has already offered to tax the income arising on account of subleasing of the said property to the group concerns, therefore, the corresponding expenditure incurred by the assessee for earning such income should also be allowed as deduction. We find merit in the above arguments of the Ld. Counsel for the assessee. Since there is no dispute to the fact that the assessee has offered to tax the income arising to it on account of subleasing of the said property, therefore, by simple logic corresponding expenditure i.e. the Government fees paid towards sub leasing of the property should be allowed as expenditure. CIT (A) is not justified in sustaining the addition treating the same as capital in nature. Disallowance of depreciation on UPS - @60% OR 15% - Held that:- As relying on BSES YAMUNA POWERS LLD. / BSES RAJDHANI POWERS LTD. [2010 (8) TMI 58 - DELHI HIGH COURT] UPS is also an integral part of computer periphery system on which depreciation at 60% is allowable. We accordingly allow this ground. Disallowance u/s 14A - HELD THAT:- The coordinate benches of the Tribunal are taking the consistent view that disallowance u/s 14A r.w. Rule 8D cannot exceed the actual exempt dividend income received. Since the assessee in the instant case has received dividend income of ₹ 1,45,616/- only and has disallowed suo-moto an amount which is in excess of the actual dividend income received, therefore, we are of the considered opinion that no further disallowance u/s 14A r/w Rule 8D is called for. The additional ground raised by the assessee is accordingly allowed.
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