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2021 (8) TMI 1216 - AT - Income TaxDisallowance u/s 14A r.w.r.8D - computation of expenses incurred for earning the tax free income - mandation of recording of satisfaction - HELD THAT:- Disallowance made by the AO and confirmed by the CIT (A) on the basis of invalid satisfaction as to the correctness of the claim of the assessee is not sustainable, hence ordered to be deleted. Credit of the entire amount of TDS - HELD THAT:- Following the decision rendered by the coordinate Bench of the Tribunal in assessee’s own case AY 2011-12 [2020 (1) TMI 403 - ITAT DELHI] we are of the considered view that assessee is entitled for credit of tax deducted at source on proportionate basis for the income declared during the year under consideration as per Rule 37BA(3)(ii) of the Rules. Licence fee paid to the Department of Telecommunication (DOT) for grant of licence to operate and provide services - disallowance by the AO on the ground that the said licence fee paid by the assessee during the years is to be amortized in accordance with section 35ABB- HELD THAT:- Following the decision rendered by coordinate Bench of the Tribunal in assessee’s own case for AYs 2006-07 to 2011-12 and decision rendered by Hon’ble Delhi High Court in assessee’s own case for AYs 2009-10 & 2010-11, we are of the considered view that ld. CIT (A) has rightly deleted the addition, hence finding no infirmity or illegality in the impugned findings. Depreciation @ 15% on the principal portion of the lease rental - HELD THAT:- In the registration certificate, assessee company is referred as the lessee and Orix Auto is referred as the lessor. Merely mentioning the name of the assessee company as the lessee does not construe ownership in favour of the assessee as has been held in case of ICDS Ltd. [2013 (1) TMI 344 - SUPREME COURT]. It is a basic principle of law that only lessor is the owner of the leased property in case of finances and depreciation is allowable to the lessor only and not the lessee. Lease agreement entered into between the assessee company and lessor of the vehicles itself provides that ownership of the vehicles will not be transferred to the lessee during the subsistence of the lease as is evident from Lease Agreement.We are of the considered view that ld. CIT (A) has rightly decided the issue in favour of the assessee.
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