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2022 (5) TMI 133 - AT - Income TaxDisallowance u/s 14A - Disallowance exceeding amount of dividend income - HELD THAT:- As in the assessee’s own case for the assessment year 2004-05 and 2005-06, [2022 (1) TMI 44 - ITAT DELHI] the Co-ordinate bench has directed the Ld. AO to re-determine the disallowance u/s 14A of the Act after considering the judgment of Hon’ble Supreme Court of India in Maxopp Investment Ltd. [2018 (3) TMI 805 - SUPREME COURT] and further directing that in no way disallowance determined by the AO shall exceed 10% of the amount of dividend income. It was submitted that unlike in the earlier years in the revised return of income suo moto disallowance was made by the assessee but the Ld. Tax Authorities below have not taken the same into consideration. . Ld. DR could not distinguish the facts or cite any other legal proposition to contrary. The bench is of considered view that the present matter also deserves to be restored to the files of ld. AO to determine the disallowance in terms of aforesaid observations. Accordingly, Ground no. 1 is allowed for statistical purposes. Nature of expenditure - amount paid by the assessee to M/s Vilter Manufacturing Corporation, USA as fee for user of know-how - capital expenditure or revenue expenditure - HELD THAT:- As in the assessee’s own case for the assessment year 2004-05 and 2005-06, [2022 (1) TMI 44 - ITAT DELHI] not finding favour with the view taken by the lower authorities wherein they had rejected the assessee's claim for deduction of the payment made for the technical know-how to M/s Vilter Manufacturing Corporation, USA as a revenue expenditure, and had dubbed the same as a capital expenditure, set- aside the.order of the CIT(A) and direct the' A.O to allow the assessee's claim for deduction of the aforesaid amount of payment as a revenue expenditure - Decided in favour of assessee. Depreciation @ 60% on UPS - AO restricted the claim of depreciation @ 15% only on the UPS and disallowed the excess 45% - HELD THAT:- UPS is integral part of the computer and the depreciation upon same should be one given upon the computers @ 60%. Accordingly the ground is decided in favour of assessee and the ld. AO shall reassess the depreciation @ 60%- Decided in favour of assessee.
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