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TMI Blog2014 (2) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... in deleting the addition of Rs.46,63,676/- made on account of disallowance of repair and maintenance expenses. 2. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting the addition of Rs.50,17,397/- made on account of excess depreciation on furniture and fixture and plant & machinery. 3. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in deleting the addition of Rs.33,35,986/- made on account of disallowance by invoking Rule 8D read with Section 14A of Income Tax Act, 1961." Ground No.1 & 2 3. Briefly stated the facts giving rise to this appeal are that the case was selected for scrutiny and notice u/s 143(2) of the Income Tax Act, 1961 (for short the Act) was served on the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ders. On specific query from the Bench, the DR fairly accepted that to the best of his knowledge, there is no order of Hon'ble High Court modifying or setting aside above orders of ITAT Delhi 'C' Bench (supra) in assessee's own appeals for the immediately preceding three years. 5. On careful reading of above orders of ITAT, we observe that in assessee's own appeal for AY 2006-07, the Department raised grounds pertaining to disallowance of repair and maintenance expenses and disallowance on account of excess depreciation on furniture, fixtures and plants and machinery. The Tribunal has decided both the issues in favour of the assessee and against the revenue by dismissing the appeal of the department with following observations:- "8. We ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ravel), communication, electricity charges, vehicle expenses and repairs and maintenance of building let out and expenses on furniture and fixtures, repair on computers, electric items, etc., all the said items having been provided to Remfry & Sagar by the assessee for us in the rented premises. Details of depreciation calculated as per the Income Tax Act on furniture and fixtures, vehicles and office equipment amounting to Rs.26,33,046/- were also provided. Taking notice of these facts, the Ld. CIT (A) observed that the expenses considered for calculating the consultancy fee, accommodated to Remfry & Sagar, along with depreciation, came to Rs.1,23,13,188/-. The reimbursement of expenses made to the assessee was on this amount, after adding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was a case of double deduction. The Ld. CIT (A) also took specific note of the fact that as per clause (6) (b) of the Rent Agreement, the reimbursement for repair and maintenance as well as electricity, power expenses, etc. had to be made to the assessee company. 11. In view of the above discussion, we concur with the finding of fact recorded by the Ld. CIT (A). The order under appeal is, accordingly, upheld, rejecting the grievance sought to be raised by the Department." 6. The same issues were raised by the department in ITA No. 3915/Del/2011 for AY 2007-08 which were also decided against the revenue and in favour of the revenue following the judgment of coordinate bench of Tribunal in ITA No.1173/Del/2011 dated 31.1.2012 (supra) and de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material placed before him. 9. Replying to the above, the AR submitted that the ITAT Delhi in assessee's own case for AY 2007-08 on appreciation of identical facts has held that the decision of Assessing Officer to invoke section 14A of the Act r/w Rule 8D of Income Tax Rules was unreasonable and order of Commissioner of Income Tax(A) deleting the addition had been upheld. The AR further submitted that until and unless the order of ITAT is modified or set aside by the higher forum, the same is binding in the subsequent proceedings of the Tribunal as a judgment of coordinate bench. 10. From a glance at the order of ITAT in assessee's own case for AY 2007-08 in ITA No.3915/Del/2011 dated 30.3.2012, we observe that ground no. 4 of the depar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be remitted to the file of the AO for ascertaining the expenditure. However, in view of the facts discussed in the preceding paragraphs, we do not find any necessity of sending back the matter to the AO, the assessee having itself made the disallowance in the computation of income, as above, and the findings of the ld. CIT(A), as discussed remaining unchallenged." 11. In view of above, we observe that this Tribunal has upheld the findings of the Commissioner of Income Tax(A) which deleted the addition made by the Assessing Officer by invoking Rule 8D of the Income Tax Rules r/w section 14A of the Act. In this judgment, it has been held that the assessee had itself added portfolio management expenditure incurred for maintaining portfolio of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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