TMI Blog2012 (10) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances, and nothing contrary being brought on record by Revenue, dis-allowance of only Rs 1 lac is upheld. Dis-allowance of claim u/s 35D - expenses incurred on issue of shares and increase in authorized capital - denial on ground that benefit of S35D could be availed for a period of 10 successive years beginning with the previous year in which the business commences which have been lapsed - Held that:- Indisputably expenditure was incurred in the FY 1999-2000 and 2000-01, for issuing the shares. The assessee claimed 1/10th of these expenses since then and no disallowance has been made in any of the earlier years. There is no dispute that the entire expenditure is revenue in nature and was allowable in the year when it was incurre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... verting first to ground no.1 in the appeal, facts, in brief, as per relevant orders are that return declaring income of Rs.17,43,92,638/- filed on 30.10.2007 by the assessee, a professional investment information and credit rating agency, after being processed u/s 143(1) of the Income-tax Act, 1961 (hereinafter referred to as the Act ), was selected for scrutiny with the service of a notice u/s 143(2) of the Act issued on 22.09.2008. During the course of assessment proceedings, the Assessing Officer (A.O. in short) asked the assessee to furnish details of expenditure incurred in relation to total income which do not form part of total income, in order to disallow expenditure in terms of provisions of section 14A of the Act. In reply, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isallowance of Rs.1 lac. The said decision was followed in the decision dated 20th October, 2008 in the AY 2004-05 in I.T.A. no.360/Del./08 and in the decision dated 21st April, 2011 in I.T.A. no.4932/Del./2010 in the AY2005-06. In the light of consistent view taken in these decisions in identical circumstances, especially when the Revenue have not placed any material before us so as to enable us to take a different view in the matter nor brought to our notice any contrary decision, we are not inclined to interfere. Therefore, ground no.1 in the appeal is dismissed. 6. Ground no.2 relates to claim u/s 35D of the Act. The AO disallowed an amount of Rs.80,417/-on the ground that provisions of section 35D were not applicable in the year unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT(A).The ld. DR supported the order of the AO while the ld. AR on behalf of the assessee relied upon the findings in the impugned order. 9. We have heard both the parties and gone through the facts of the case. Indisputably, the expenditure of Rs.2,55,169/- was incurred in the financial year 1999-2000 and Rs.5,49,000/- in the financial year 2000-01, for issuing the shares to M/s Moody s. The assessee claimed 1/10th of these expenses since then and no disallowance has been made in any of the earlier years. There is no dispute that the entire expenditure is revenue in nature and was allowable in the year when it was incurred. Instead of claiming the entire expenditure in that year, the assessee deferred the amount, claiming only 1/10th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such as, printers, scanners and server etc. form an integral part of the computer system. In fact, the computer accessories and peripherals cannot be used without the computer. Consequently, as they are the part of the computer system, they are entitled to depreciation at the higher rate of 60 per cent." 13.1 Following the said decision, ITAT in ITO vs.v.Omni Globe Information Technologies India (P.) Ltd., 131 ITD 280(Delhi) held that if peripherals such as printers, scanners and servers etc. form integral part of the computer system, UPS will also be an integral part of the computer system, entitled for deduction of depreciation at the rate of 60 per cent. In another decision dated 9.11.2010, Hon ble Delhi High Court in CIT vs. Citycorp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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