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Deputy CIT & Anr Versus M/s. Luthra & Luthra Law Office & Anr

2015 (7) TMI 408 - ITAT DELHI

Depreciation on computers disallowed - CIT(A) deleted the addition - Held that:- Assessee had furnished all the necessary details of the purchases of 100 computer systems from Lavena Sales Co. Pvt. Ltd. like invoice for payment raised by the seller company wherein they had also levied value added tax on the same, their address and that the amount for these computers was paid through a cheque which was duly cleared from the bank account of the assessee. The assessee had also obtained copies of it .....

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f the assessee. The Pune Bench of the ITAT in the case of U.B. Engineering Ltd. vs. JCIT (2007 (9) TMI 339 - ITAT PUNE) where the genuineness of purchase of certain gas cylinder was questioned in a claim of depreciation for the same, held that the ownership of the gas cylinder, their use in the business of the assessee and genuineness of payment for such gas cylinders was deemed to be sufficient to prove the genuineness of the transaction. Thus CIT(Appeals) was justified in deleting the disallow .....

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financial years and worked for some part of the next financial year also. Keeping in view this material fact, the disallowance has been made on proportionate basis. The Assessing Officer has dealt with the issue in para Nos. 6.1 to 6.6 of the assessment order. In concluding para No. 6.6, he held that out of ₹ 78,20,800 claimed by the assessee, only ₹ 45,62,133 belong to financial year 2008-09 and remaining amount of ₹ 32,58,667 belong to financial year 2009-10. Therefore, only .....

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013 - Dated:- 23-3-2015 - Shri I.C. Sudhir And Shri J.S. Reddy JJ. For the Appellant : Shri Gaurav Dudeja, Sr. DR For the Respondent : S/Shri Vikas Srivastava, Parag Mohanty & Ms. Varsha Bhattacharya, ARs ORDER Per I.C. Sudhir: JUDICIAL MEMBER These are the cross-appeals wherein the Revenue has questioned First Appellate Order on the following grounds: 1. In the facts and circumstances of the case, the Learned CIT(Appeals) grossly erred in deleting the addition made by the A.O. on account of .....

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grossly erred in deleting the addition made by the A.O. not appreciating the fact that just mere obtaining PAN. VAT certificated does not conclusively prove the identity of party from whom computers were claimed to have purchased. Further, payment through banking channel also does not conclusively prove the genuineness of the transactions. 4. The appellant craves leave to all amend or modify the ground of appeal before or during the course of the appeal. It is prayed that the order of CIT(A) is .....

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not establish the existence of the company from which it had claimed to have purchased the computers on which depreciation was claimed. In this regard, he referred contents of para Nos. 3.1 to 5.7 of the assessment order. He submitted that onus of establishment of genuineness of the claim was lying upon the assessee to which it has failed to. The Learned CIT(Appeals) was thus not justified in deleting the disallowance. 4. The Learned AR on the other hand tried to justify First Appellate Order re .....

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bank account of the assessee. He contended that the computers were purchased by the assessee in July 2008 and the Assessing Officer had got examined their physical presence by sending somebody on their given address in December 2011. Thus, it was possible that the company might have shifted its address or might have reorganized its business. The Learned AR also pointed out that the Delhi Value Added-tax website contains details of the VAT registration for the company and the address of the comp .....

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M.K. Brothers (1987) - 30 Taxman 547 (Guj.); iv ) DCIT vs. Rajeev Ji Kalathil (2014) - 51 Taxman.com 514 (Mum.) 5. Considering the above submissions and having gone through the orders of the authorities below as well as the decisions relied upon, we find that the assessee had furnished all the necessary details of the purchases of 100 computer systems from Lavena Sales Co. Pvt. Ltd. like invoice for payment raised by the seller company wherein they had also levied value added tax on the same, th .....

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ine genuineness of depreciation claimed under the provisions of sec. 32 of the Act, all that needs to be established is ownership of depreciable assets and their use in the business of the assessee. The Pune Bench of the ITAT in the case of U.B. Engineering Ltd. vs. JCIT (supra) where the genuineness of purchase of certain gas cylinder was questioned in a claim of depreciation for the same, held that the ownership of the gas cylinder, their use in the business of the assessee and genuineness of .....

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TA No.2112/Del/2013: 7. The assessee has impugned First Appellate Order on the following grounds: 1. The order passed by the Learned CIT(Appeals)-XXVIII, New Delhi (Ld.CIT(A) under sec. 250 of the Income-tax Act, 1961( the Act ) is bad in law and on facts and circumstances of the case. 2. The Learned CIT(Appeals) as well as leaned Assessing Officer (hereinafter referred as Ld.A.O. ) have erred in law and on facts and circumstances of the case by disallowing a proportion of the Revenue expenditur .....

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al in nature, hence, does not need independence adjudication. 9. Ground Nos. 2 and 3 involve the issue as to whether the Learned CIT(Appeals) was justified in upholding the disallowance of proportion of the Revenue expenditure incurred by the assessee towards payment of software license fee on the basis that the license fee was valid for a period outside the assessment year? 10. At the outset of hearing, the Learned AR pointed out that the issue raised in the above grounds is squarely covered by .....

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