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2016 (8) TMI 1573 - AT - Income TaxAddition on account of commission paid to directors by the assessee company - HELD THAT:- We have perused the records placed before us and orders referred and relied upon by the Ld. AR in assessee’s own case for assessment year 2005-06 and 2006-07. It is observed that the similar payment has been made to the same employee directors during those preceding years. The facts and circumstances being similar and identical to the year under consideration we respectfully following the decision of the coordinate bench of this tribunal in assessee’s own case for the previous assessment years hold that the payment of commission was justified and is allowable under section 36 (1) (iii) . Addition made u/s 14 A read with Rule 8D on account of expenditure incurred for incurring dividend, being exempt income - HELD THAT:- It is undisputed facts that Rule 8D is not retrospective and therefore is applicable from assessment year 2008-09. We accordingly set aside this issue to the Ld. AO for calculating the disallowance under section 14 A of the act by applying the ratio laid down by the Hon’ble jurisdictional High Court in the case of M/s Maxopp Investment Ltd [2011 (11) TMI 267 - DELHI HIGH COURT] Depreciation at the rate of 60% on addition of computer peripherals, printers, UPS etc - AO and CIT (A) allowed the depreciation @ 15% on the basis that the UPS is not an integral part of the computer as the computer can function without these peripherals - HELD THAT:- As decided in own case [2014 (7) TMI 1314 - ITAT DELHI] since the expenditure is with regard to the computer peripherals, printers, UPS which cannot be used stand alone, therefore, in view of the decision relied upon by the appellant, I agree that in the facts and circumstances of the appellant's case, he is entitled for depreciation @ 60%. Allowability of foreign travel and conveyance expenses - AR submits that the details of the foreign travel expenses have been provided in the paper book which include the provision for dividend - HELD THAT:- We agree with the contentions of the Ld. AR that the provision for dividend has been added back in the computation. Therefore we are inclined to modify the directions issued by the Ld. CIT (A) that the Ld. AO may allow the same as an expenses. TDS u/s 195 - No deduction of TDS on payment of external services and recruitment expenses - HELD THAT:- In the instant case the assessing officer has not discussed any factual aspect in respect of the payment made by the assessee to the non-resident. The Ld. AR has submitted before us the MOU dated 10/07/2006 entered into by the assessee with the non-resident. We accordingly remand the issue to the Ld. AO for verifying the details as submitted by the assessee before the Ld. CIT (A) and to examine the issue in the light of the decision by Hon’ble High Court in the case of CIT versus EON Technology Private Limited [2011 (11) TMI 20 - DELHI HIGH COURT] Accordingly this issue raised by the assessee stands allowed for statistical purposes. Bad debt and advances reimbursed - bad debts being outstanding for more than a year and a recovery was remote - assessee claimed the said amount as bad debt under section 36 (1) (vii) - AO rejected assessee’s contentions as the companies were well-known group and there was no reason for the bad debts to become bad - HELD THAT:- During assessment proceedings the Ld. AO was well possessed with these details, to prove that the debts were written off. A similar issue arose before Hon’ble Supreme Court in the case of M/s Vijaya Bank versus CIT and Anr. [2010 (4) TMI 46 - SUPREME COURT] wherein the Hon’ble court has held that an assessee debits the amount of bad debts to the profit and loss account and credits the said account it would constitute a write-off of actual bad. In the light of the ratio laid down by Hon’ble Supreme Court in the case of M/s Vijaya bank Vs.CIT (supra) the claim of bad debts stands allowed.
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