Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (5) TMI 681 - AT - Income TaxDisallowance of depreciation on intellectual property rights, being software used in the business of the assessee - HELD THAT:- It is clear from the remand report as well as purchase order issued by M/s. Satyam Computers dated 18.10.2005 that iAllwayTM MIFS Server License has been acquired and the IPR has been used in the assessee company business for a period of 12 months, which falls under the assessment year of 2007-08. Once the depreciation on IPR is not in dispute, there is clear cut evidence of purchase order is on the record and moreover, the iAllwayTM Server License was used in the assessee company business, we set aside the order of the ld. CIT(A) on this issue and direct the Assessing Officer to allow depreciation as claimed by the assessee for the assessment year 2007-08. So far as claim of depreciation on IPR for the assessment year 2008-09 is concerned, in the remand report, the Assessing Officer has stated that the assessee has not contested this issue by way of fresh evidence and therefore, no report on this issue was submitted before the ld. CIT(A). Since the assessee has not furnished renewal of iAllwayTM Server License in subsequent period either before the ld. CIT(A) or before the Tribunal, we are not inclined to interfere with the order of the ld. CIT(A) in confirming the disallowance made by the Assessing Officer. Accordingly, the ground raised by the assessee for the assessment year is dismissed. Disallowance towards unsecured loan given by the Director to the company - HELD THAT:- It is not the case of the Department that the assessee has not availed any loan and more so, the assessee has produced all details available to the extent 89% of loan amount, which shows that the assessee has availed unsecured loans and moreover, loan receipt entry is very much available in the ledger accounts of Shri R. Srinivasan. Under the above facts and circumstances, the addition confirmed to the extent of ₹.2,48,000/- by the ld. CIT(A) is deleted. Thus, the ground raised by the assessee is allowed. Disallowance of loan - HELD THAT:- We have perused the appellate order and find that in para 5.5 under addition on account of cash deposits to the tune of ₹.5,66,000/-, the submissions of the assessee about receipt of loan of ₹.5,00,000/- from M/s. Shreyas Investment through Shri R. Srinivasan and its repayment along with interest through Shri R. Srinivasan was not doubted by the ld. CIT(A) inasmuch as the assessee had shown the ledger account for interest payment and accordingly, directed to delete the addition of ₹.5,00,000/- . The same submissions of the assessee made towards addition has been rejected by the ld. CIT(A) and confirmed the addition is not correct. Under the above facts and circumstances, the addition confirmed by the ld. CIT(A) is deleted.
|