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2020 (8) TMI 148 - AT - Income TaxDisallowance of 40% of general licence fee - addition as same as not incurred wholly and exclusively for the purpose of business of the assessee - HELD THAT:- This issue is squarely covered in favour of the assessee by the orders of the Hon’ble High Court and the Tribunal in assessee’s own case in earlier Asst. Years. We also note that this issue was also decided in favour of the assessee by dismissing the Department’s ground in immediately preceding Asst. Year: 2009-10 [2020 (7) TMI 567 - ITAT DELHI] by a Co-ordinate Bench of this Tribunal - we uphold the findings of the Ld. CIT (A) on the issue and dismiss the ground raised by the Department vis a vis license fee in all the years under consideration. Rate of depreciation to be allowed on UPS - assessee has claimed deprecation @ 60% in all the years under appeal whereas the AO has restricted the same to 15% - CIT (A) deleted the disallowance - HELD THAT:- We note that this issue is squarely covered in favour of the assessee by numerous orders of the Tribunal as well as of the Hon’ble Delhi High Court. Even in Asst. Year 2009-10 [2020 (7) TMI 567 - ITAT DELHI] the Tribunal, in assessee’s own case has decided the issue in favour of assessee by upholding the order of the Ld. CIT (A) on the issue. Now even the depreciation schedule provides depreciation on UPS @ 60%. Thus, the controversy is now settled by the amendment in the depreciation schedule itself. Accordingly, in Asst. Year 2010-11 we dismiss the ground raised by the Department and in Asst. Year: 2011-12 we allow the ground raised by the assessee with respect to depreciation on UPS and direct that the assessee should be given benefit of depreciation on UPS @ 60%. Disallowance u/s 14A - non recording of satisfaction - Suo moto disallowance - Department’s challenge to a part deletion of the disallowance by the Ld. First Appellate Authority by holding that no disallowance could have been made in respect of interest expenses as the assessee had accumulated surplus - HELD THAT:- We find that this issue stands covered in favour of the assessee by the order of the Tribunal in Asst. Year: 2009-10 [2020 (7) TMI 567 - ITAT DELHI] We also note that although the Ld. CIT-DR has submitted that the issue of recording the satisfaction has to be examined every year and that there is no res-judicata in Income Tax proceedings, all the same, a perusal of the Asst. orders for the years under appeal shows that the Assessing Officer has made identical observations in all the years under appeal and in all the years the factum of recording of satisfaction is completely absent. Suo moto disallowances were not commented upon by the Assessing Officer but were completely disregarded and no satisfaction for not accepting the suo moto disallowances was recorded by the AO.AR has also submitted that the disallowances may be restricted to the suo moto disallowance offered by the assessee company. Therefore, we sustain the disallowance u/s 14A, as offered by the assessee company accordingly. Depreciation on pollution control equipment and energy saving devices - AO denied depreciation on the ground that the assessee could not establish that the pollution control equipment and energy saving devices were put to use by the assessee - HELD THAT:- We note that this issue is also covered in favour of the assessee by the order of the Co-ordinate Bench of the ITAT in assessee’s own case for Asst. Year 2009-10 [2020 (7) TMI 567 - ITAT DELHI] wherein the Tribunal has upheld the findings of the Ld. CIT (A) in deleting the said depreciation disallowance made by the Assessing Officer. we dismiss the ground raised by the Department on the issue of disallowance of depreciation on pollution control equipment and energy saving devices in all the five years under appeal. Revenue appeal dismissed.
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