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2016 (5) TMI 530 - ITAT AHMEDABADDisallowance of depreciation made on non compete fees - Held that:- Since the claim of assessee was allowed in A.Y. 2007-08 and 2008-09, meaning thereby that Revenue has accepted the claim and in such situation, on the same non-compete fees without there being any change in facts, no disallowance on depreciation can be made in the year under consideration. - Decided against revenue Disallowance of claim of reduction from stock of packing material and finished goods - Held that:- CIT(A) while deleting the addition made by A.O. has given a finding that the list of packing material which were written off contains clear justification the goods that were considered to be not usable and it showed the material, quantity and description of the various items which were lying at different godowns and which were considered to be as damaged. With respect to the reduction from closing stock of finished goods, the ld. CIT(A) has given finding that assessee has followed due procedure for writing off of the stock and procedure has been verified by auditors and the procedure followed by the assessee was as per accounting practices followed by the assessee. Before us, Revenue has not brought any material on record to controvert the finding of ld. CIT(A). - Decided against revenue Disallowance of claim of foreign travel expenses - Held that:- CIT(A) while deleting the addition had given a finding that the assessee had furnished compete details of employees who had travelled abroad, duration of visit, countries visited, nature and amount of expenses and purpose of travel. He has also noted that the evidences placed on record include the correspondences made with the travel agents and the expenses were reasonable as compared to the total turnover of the company. Before us, Revenue has not brought any material on record to controvert the finding of ld. CIT(A).- Decided against revenue Disallowance of web designing charges - Held that:- CIT(A) while deleting the addition on account of web designing charges has given a finding that no asset has been created but web designing is only a tool for facilitating the business of the assessee as it provides the means for managing the information about the assessee. With respect to trade mark expenses, he has given a finding that the expenses did not create any asset or result into any advantage of enduring nature and the expenses were only incurred to avoid future litigation and therefore, expenses were revenue in nature. With respect to survey expenses, he has given a finding that the expenses have been incurred to improve efficiency of the business by finding out customers preferences for sugar substitute, market research for its product, evaluation of its product and the expenses are necessary in line of the business. Before us, Revenue has not brought any material on record to controvert the finding of ld. CIT(A). - Decided against revenue Disallowance made u/s.40(a)(ia) - non TDS on account of gift articles and promotional articles - Held that:- CIT(A) while deleting the addition had noted that the items that were purchased by the assessee were for sales promotion, were in the nature of ready goods and only logo of the company was printed on the items and the logo was added to promote the business. - Decided against revenue
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