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2017 (1) TMI 618 - AT - Income TaxRate of depreciation on CCTV cameras - Held that:- CCTV cameras cannot function without computer, as to see the footage captured by CCTV camera you need a device in the shape of computer and thus, Computer is an integral part of CCTV camera and as such, is eligible for depreciation at the rate of 60% as prescribed for Computers under the Income Tax Act and accordingly, allow the depreciation @ 60% on the issue in dispute. See Commissioner of Income Tax Versus Citicorp Maruti Finance Ltd. [2010 (11) TMI 802 - Delhi High Court ] Disallowance of advertisement expenses - Held that:- The said expenditure was genuine one as the same was paid to Lion Club for advertisement in District Directory for good and effective medium for company's products and services, as is evident from the receipt filed at pages 165 of the paper book and delete the addition in dispute by relying on the judgment of Hon'ble High Court of Delhi in the case of CIT vs. Salora International Limited reported in [2008 (8) TMI 138 - DELHI HIGH COURT ] wherein it has been held that expenses incurred for advertisement and sales promotion and brand building are allowable expenses. Disallowance expenditure(i.e. 10% of the telephone expense and vehicle running and maintenance expenses and 40% of the festival expenses) - Held that:- The disallowance made by AO are without any basis and purely adhoc disallowances made for personal use or vouchers in the hands of the company which is not permissible in the eyes of law. Also note that the disallowance (40% of the festival expenses) has been incurred exclusively for the business purpose and all the payments had been through bank with proper supporting vouchers, hence, both the additions in dispute are deleted. See Sayaji Iron & Engg. & Co. vs CIT (2001 (7) TMI 70 - GUJARAT High Court ). Eligibility for deduction under section 80G - disallowing the donation - assessee had been made for the purpose of advertisement of the company - Held that:- As find that the expenditure of ₹ 20,000/- was paid for brand promotion and effective marketing of company's products and services, as is evident from the receipt filed at page 166 of the paper book. Hence, the addition in dispute is deleted. Also find that even otherwise the assessee is eligible for deduction under section 80G of the I.T. Act, 1961. See CIT vs. Salora International Limited [2008 (8) TMI 138 - DELHI HIGH COURT ] wherein, it has been held that the expenses incurred for advertisement and sales promotion and brand building are allowable expenses.
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