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2015 (1) TMI 650 - AT - Income TaxAddition invoking the provisions of section 40(a)(i) - fee for technical services - Held that:- The insistence of the Revenue to say that the amount has been paid in this year and therefore it is covered within the prescription of section 40(a)(i) of the Act is quite otiose to the requirements of section 40(a)(i) of the Act. There is no dispute to the proposition that the said payment has not been claimed as a revenue expenditure while computing the income chargeable under the head ‘Profits and gains of business or profession’ in this year and therefore the same would not fall for consideration in section 40(a)(i) of the Act. Thus do not find any justification to uphold the addition of ₹ 2,78,20,447/- made by the lower authorities by invoking section 40(a)(i) of the Act. The order of the CIT(A) is set-aside and the Assessing Officer is directed to delete the addition of ₹ 2,78,20,447/- . - Decided in favour of assessee. Depreciation disallowed in respect of Honda Motor Car @50% - Held that:- The vehicle in respect of which assessee seeks to claim depreciation @ 50% is a ‘light motor vehicle’ and therefore the claim for enhanced rate of depreciation is on a sound footing. Ostensibly, the provisions of the Depreciation Table annexed as Appendix-I to the Rules clearly apply and therefore the lower authorities were not justified in denying assessee’s claim for allowance of depreciation @ 50% on the vehicle in question, subject to the fulfillment of other conditions. Thus set-aside the order of the CIT(A) and direct the Assessing Officer to re-compute the depreciation allowable on the impugned vehicle as per aforesaid direction and in accordance with law. - Decided in favour of assessee for statistical purposes. Deduction u/s.80IB - date of completion of construction of the housing project - Held that:- No reason to interfere with the ultimate conclusion of the CIT(A) in allowing assessee’s claim for deduction u/s.80IB(10) of the Act amounting to ₹ 23,87,480/- as CIT(A) has called for information u/s.133(6) of the Act from the PMC and its response did not reveal any objection on the part of the PMC that the construction was not complete with respect to the sanctioned plans. Therefore, factually speaking, there is no controversion to the assertions of the assessee that it’s project was otherwise complete as per the sanctioned plans within the stipulated date. As a consequence, the order of the CIT(A) is hereby affirmed and Revenue fails in its appeal. - Decided against revenue.
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