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2018 (6) TMI 509 - AT - Income TaxExclusion of Freight & Insurance from Total Turnover for the purpose of quantifying deduction u/s.10B - Held that:- It is a settled legal proposition that the said expenditures, i.e. freight and insurance are to be excluded both from the total turnover and the expected turnover of the assessee for the year under consideration. Therefore, following the decision of Co-ordinate Bench of the Tribunal in assessee’s own case [2016 (8) TMI 1047 - ITAT PUNE] Ground Nos. 1 and 2 raised by the Revenue are dismissed. Claim of expenditure towards contribution made to Aslaji Agiary Trust - payment made to discharge the social responsibility - Held that:- the expenditure of ₹ 14 lakhs falls short of the legal requirement of wholly and exclusiveness qua the business purpose of the assessee. It cannot be said that the said expenditure is for the company in its entirety. - CIT(A) is justified in upholding the addition. Expenditure incurred on laying of the water pipeline involving the land owned by Maharashtra Government - revenue or capital - Held that:- Weight of other business considerations, the test of enduring benefit might even break down. The said view has strength of the Supreme Court judgment in the case of Dalmia Jain and Company Ltd. Vs. CIT [1971 (7) TMI 2 - SUPREME COURT] as well which is relevant for the proposition that certain litigation expenditure relating to the leasehold rights constitute Revenue expenditure. Therefore, we are of the opinion that the expenditure incurred on laying of the water pipeline involving the land owned by Maharashtra Government constitutes Revenue expenditure. Addition of rent paid for the property - Held that:- Considering the above decision of the Tribunal in assessee’s own case, we are of the opinion that the expenditure on account of rent paid on the house property is allowable in favour of the assessee. Allowability of depreciation of capital expenditure in connection with the said house property at 70, Koregaon Park - Held that:- There is no clarity with reference to the capitalised items of assets credited to the Serum Institute of India Ltd. in the said house premises occupied by Mr. Z.S. Poonawalla, applicable rate of depreciation and the use of the asset etc. As discussed in the open court, we are of the opinion that this limb of the ground should be remanded to the file of AO for fresh adjudication after granting reasonable opportunity of being heard to the assessee in accordance with the set principles of natural justice. Allowability of deduction to the Wealth Tax paid by the assessee for the purpose of computing book profits u/s.115JB - AO denied the said payment of tax as not an allowable deduction - Held that:- Wealth Tax paid constitutes an allowable deduction as held by the Tribunal in assessee’s own case for the A.Y. 2008-09.
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