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2023 (11) TMI 797 - ITAT AHMEDABADTP Adjustment - international transactions of the assessee pertaining to payment of management fees - CIT(A) restricting the arms length price of international transaction of management fees paid by the assessee to 1.5% of the operating revenue of the assessee - HELD THAT:- In view of the observations made by the ITAT in assessee’s own case for assessment year 2011-12 [2020 (1) TMI 154 - ITAT AHMEDABAD] we observe that the ITAT has clarified that 2% of the operating revenue of manufacturing segment would be allowable to the assessee towards management charges. Excess depreciation claimed on computer software license - assessee had claimed depreciation @ 60% on computer software installed during the year under consideration - AO considered this software as “intangible” and restricted the depreciation on such software @ 25% - HELD THAT:- We observe that in the case of CIT vs. Computer Age Management Services [2019 (7) TMI 1153 - MADRAS HIGH COURT] has held that where software license acquired by the assessee was in the nature of software application, the assessee was eligible to claim depreciation @ 60%. Again, in the case of A.R. Kema Medical India Pvt. Ltd. [2022 (4) TMI 1182 - ITAT MUMBAI] again held that where the assessee purchased license of ERP SAP Software, the assessee was entitled to depreciation on such license @ 60%. Again, in the case of Castus Imaging India Pvt. Ltd. [2018 (5) TMI 636 - MADRAS HIGH COURT] decided that printer being part of computer, it is eligible for depreciation at higher rate of 60%. Thus CIT(A) has not erred in allowing depreciation @ 60% on such computer software. Decided in favour of assessee. Excess claim of consumption of own generation of electricity - HELD THAT:- We observe that on perusal of the paper book, it is seen that the assessee had filed various invoices for hiring of generator sets, which have not been disputed. Further, the assessee had also submitted that invoices for purchase of oil for running the DG sets. More importantly, it is also observed that the production in the aforesaid units had also taken place during the impugned year under consideration and the income therefrom has been offered to tax. Accordingly, assessee has produced necessary invoices for taking the DG sets on rent and the invoices for the purchase of oil for running the aforesaid DG sets. Income from manufacturing units have duly been offered to tax by the assessee and also that while disallowing the aforesaid expenditure, AO has also not rejected the books of accounts of the assessee. Accordingly, we find no infirmity in the order of ld. CIT(A) while allowing this ground of appeal of the assessee.
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