Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (9) TMI 1032 - AT - Income TaxDisallowance of depreciation - acquisition of the intellectual property asset and claimed depreciation @ 25% treating it as intangible capital asset - HELD THAT:- As informed that the revenue did not file any appeal against the order of Ld. CIT (A) in the first year i.e., in AY 2012-13. However, looking to the fact that since in this year the assessee is allowed for depreciation on WDV brought over, then an earlier position has been accepted and attained finality, then depreciation cannot be disallowed in the subsequent year. Once the depreciation has been allowed in the first year of capitalisation of expenditure, thereafter there is no basis for disallowing the consequential benefit on WDV. Accordingly, this ground raised by the revenue is dismissed. Disallowance of 14A - Assessee argued AO without recording any satisfaction as to what was the exempt income and the computation of disallowance made by the assessee is not correct - CIT(A) had restricted the disallowance to the amount of exempt income following the decision of earlier years and the judgment of Hon’ble Delhi High Court - HELD THAT:- Since the aforesaid decision is based on the principle laid down by the Hon’ble Jurisdictional High Court, therefore, we do not find any infirmity in the finding of the Ld. CIT(A) and the same is confirmed. Disallowance on account of club expenditure - HELD THAT:- AO has disallowed the club services and these expenses holding that it is not related to the business activities of the assessee. Ld. CIT (A) relied upon the judgment of Hon’ble Supreme Court in the case of CIT vs. United Glass Mfg. Co. Ltd. [2012 (9) TMI 914 - SUPREME COURT]. and the earlier year Ld. CIT(A) order has deleted the said disallowance. We find that this issue is decided in favour of the assessee company by the order of the Tribunal in the appeal for the assessment year 2011- 12. Accordingly this ground raised by the revenue is dismissed. Disallowance on account of late payment of ESI and PF - CIT-A deleted the addition - HELD THAT:- Once the payments have been made on or due date of return of income then we do not find any infirmity in the aforesaid finding of the Ld. CIT(A). Accordingly this ground of the revenue is dismissed.
|