Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (6) TMI 278 - ITAT MUMBAI

2015 (6) TMI 278 - ITAT MUMBAI - [2015] 41 ITR (Trib) 114 (ITAT [Mum]) - Disallowance of depreciation on motor car - CIT(A) allowed the claim - Held that:- As decided in assessee's own case for assessment year 2005-06 registration under Motor Vehicle Act is not an essential requirement for acquiring ownership of the motor vehicle and that an assessee purchasing a motor vehicle for valuable consideration and using the same for his business cannot be denied benefit of depreciation on the ground th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ch a part of the debt as is the brokerage which is charged by the assessee on the transaction. Since the brokerage and value of shares both form a component part of the debt, the requirements of section 36(2)(i) are fulfilled where a part thereof is taken into account in computing the income of the assessee. Further, it is not disputed that the assessee has written off the debts as bad in its books of account. Under these set of facts, we notice that the assessee complied with the provisions of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

examination at the end of the AO. Accordingly, we set aside the order of ld. CIT(A) on this issue and restore the same to the file of AO with a direction to examine the same in the light of the decision of ITAT in the case of AMWAY India Enterprises (2008 (2) TMI 454 - ITAT DELHI-C ) by duly considering the break-up details, information and explanation that may be furnished by the assessee. - Decided in favour of assessee for statistical purposes.

Disallowance of penalty paid to the S .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ule 8D are not applicable to the year under consideration, the disallowance to be made u/s 14A of the Act should be computed in a reasonable manner. We have earlier noticed that the AO has applied the provisions of Rule 8D for computing the disallowance. Hence, we are of the view that this issue requires fresh examination. See case of Godrej & Boyce Mfg Co. Ltd [2010 (8) TMI 77 - BOMBAY HIGH COURT]

Disallowance of Bombay Stock Exchange Card Amortization expenditure - Held that:- this .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ation amount of ₹ 6,42,500/- is allowable as deduction under the Income Tax Act. Hence, we are of the view that the ld. CIT(A) was justified in confirming the disallowance made by AO. - Decided against assessee.

Sale of shares - Short Term Capital Gains OR business income - Held that:- Both the tax authorities have given findings that the assessee has earned above said amount on purchase and sale of shares on the very same date. It is well established principle that the intentio .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

- Decided against assessee. - I.T.A. No.3325/Mum/2011, I.T.A. No.4371/Mum/2011 - Dated:- 5-6-2015 - S/SHRI B.R.BASKARAN AND AMIT SHUKLA, JJ. For the Appellant : Shri Nishit Gandhi For the Respondent : Shri Asghar Zain V P ORDER PER B.R. BASKARAN (AM) These cross-appeals are directed against the order dated 10.3.2011 passed by the Ld.CIT (A)-11, Mumbai and they relate to the assessment year 2007-08. 2. Briefly stated facts of the case are that the assessee is engaged in the business of Share Br .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

otor car. The assessee had purchased vehicles in the name of its Director, but disclosed the same as part of its assets. Accordingly, it claimed depreciation on the vehicles. However, the AO disallowed the depreciation on the reasoning that the vehicles were not in the name of Assessee Company. The ld. CIT(A), however, allowed the deprecation by following the decision dated 30.9.2010 rendered by the Tribunal in assessee s own case in ITA nos. 4917/Mum/2009 and 4821/Mum/2009 relating to assessmen .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

(ITAT)[Del]) and also the decision of the Jurisdictional High Court in the case of CIT V/s Dilip Singh Sardarsingh Bagga reported in 201 ITR 995 (Bom), wherein it has been held that the registration under Motor Vehicle Act is not an essential requirement for acquiring ownership of the motor vehicle and that an assessee purchasing a motor vehicle for valuable consideration and using the same for his business cannot be denied benefit of depreciation on the ground that the vehicle was not registere .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

The ld.CIT(A), however, allowed the claim of the assessee by following the decision of Special Bench of Mumbai Tribunal in the case of DCIT V/s SHREYAS S. MORAKHIA [2010] 40 SOT 432 (ITAT[Mum]).The ld.CIT(A) also noticed that an identical disallowance made in the assessment year 2006-07 has been deleted by the Mumbai Bench of the Tribunal in assessee s own case. 4.1 At the time of hearing, the ld.AR pointed out that the decision rendered by the Special Bench of the Mumbai Tribunal in the case of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d where a part thereof is taken into account in computing the income of the assessee. Further, it is not disputed that the assessee has written off the debts as bad in its books of account. Under these set of facts, we notice that the assessee complied with the provisions of sections 36(1)(vii) as well as 36(2)(i). Hence, by following the decision of Jurisdictional High Court rendered in the case of SHREYAS S. MORAKHIA (supra), we uphold the order of the ld.CIT(A) on this issue. 5 The next issue .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s had been included in Software and web development expenditure. The ld.CIT(A) disallowed the claim of ₹ 5,08,509/- referred above. However, the ld.CIT(A) took the view that the assessee has been consistently claiming the software web development expenditure at higher level over the years and accordingly disallowed 20% of the expenses, holding the same as excessive and unreasonable and allowed the remaining amount. 5.1 The ld. DR submitted that the software development expenditure should b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssue relating to the same has since been decided by the Special Bench of the Tribunal in the case of AMWAY INDIA ENTERPRISES V/s DCIT [2008] 111 ITD 112 (ITAT)(SB)[Del]). Since the break-up details of the expenditure are not available on record, we are of the view that this issue requires fresh examination at the end of the AO. Accordingly, we set aside the order of ld. CIT(A) on this issue and restore the same to the file of AO with a direction to examine the same in the light of the decision o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

]) have held that Explanation to Sec 37(1) are not applicable to the penalty paid on contravention of bye-laws of the Stock Exchange. Accordingly, he allowed the claim of the assessee. The ld. AR pointed out that the coITA ordinate Bench of the Tribunal has considered an identical issue in assessee s own case for the assessment year 2005-06 passed in ITA NO.4347/Mum/2009 and 4033/Mum/2009 dated 4.6.2010. We notice that the co-ordinate Bench of the Tribunal has deleted an identical disallowance m .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

, though agreed with the contentions of the assessee the the provisions of Rule 8D are not applicable to the year under consideration in view of the decision of the jurisdictional High Court in the case of Godrej & Boyce Mfg Co. Ltd (234 CTR 1)(Bom), yet he held that disallowance of ₹ 4,65,945/- made by AO is reasonable. The ld.AR pointed out that the AO has made an identical disallowance in the assessment year 2006-07 and the Tribunal has restored the matter to the file of the AO to d .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e disallowance u/s 14A in a reasonable manner as held by the Hon ble Jurisdictional High Court in the case of Godrej & Boyce Mfg Co. Ltd(supra). 8. The next issue contested by the assessee relates to partial confirmation of web and software development expenses. While dealing with the appeal filed by the Revenue, we have restored back this issue to the file of AO for fresh consideration. Hence, the assessee is directed to submit its contentions before the AO in the set aside proceedings. The .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

llotted to the assessee in Bombay Stock Exchange Ltd and was disclosed as Investment in Balance-sheet and remaining amount paid for acquisition of card i.e. ₹ 64,25,000 was amortized by the assessee in 10 equal installment beginning from the financial year 1997-98. The AO disallowed the claim of the assessee by holding that depreciation on BSE card is not allowed by department. 9.1 The ld. CIT(A) noticed that the assessee company was entitled to claim depreciation on BSE card up to 19.8.20 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

exchange. The submission of the assessee is that it has already capitalised the value of BSE card at ₹ 65.75 lakhs. What is claimed now relates to the amortization of the excess payment. Hence, in our view, the decision of Hon ble Supreme Court, referred supra, is not applicable to this claim. We notice that this is the last year of claim, which means that the assessee had made similar amortisation claim in earlier years also. However, it was not shown to us by either parties that the said .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version