TMI Blog2011 (4) TMI 1336X X X X Extracts X X X X X X X X Extracts X X X X ..... r, he mentioned that major grounds of these appeals are covered of the Revenue, as the case may be. Further, assessee s counsel filed a chart giving the particulars of concise grounds, amounts of addition, references to the orders of the Revenue and the way the issues are covered either side. In the last column of chart, assessee referred to certain decisions which would have impact on the claim of assessee. For the sake of completeness, the said chart is scanned and pasted in the succeeding paragraphs. Taking cue from the above chart, we proceed to adjudicate the grounds raised in all these three appeals as per the discussion in the succeeding paragraphs. ITA No. 965/PN/2009 - Asstt. Year 2003-04 - Assessee s appeal) 2. G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Counsel prayed for assigning this issue to the files of the A.O for examining the issue afresh in the light of above referred apex Court judgment as well as Gujarat High Court. On observation of the above, we find the issue of leasehold right is covered in favour of the Revenue by virtue of the decision of this tribunal in the assessee s own case and the same, therefore, is in the capital nature and this is not in dispute before us. The only dispute for adjudication before us relates to whether the assessee is entitled for depreciation on such lease right and if they are in the nature of eligible rights specified in 32(1)(ii) ie business or commercial rights of similar nature, as observed by the Apex Court in the case of Techno Shares and S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t between Greaves Ltd. and Appellant [relied upon by the lower authorities] 2. 31 Mar 1998 Accounted the purchase transaction in the books of account 3. 01 April 1998 The Appellant paid stamp duty on account of entering into the aforesaid agreement 4. 01 April 1998 Depreciation on assets acquired from Greaves Limited was claimed from A.Y. 1999-00 onward only. 5. 08 April 1998 First sale Invoice was raised by Appellant from Baramati unit. 6. 25 June 1998 Transfer of dealership net ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... copy of the unreported decision in printed form to support his arguments. Accordingly, the ground is set aside. 4. Ground C relates to disallowance of provision for warranty . At the outset, the Ld. Counsel for the assessee referred to page 126 of Paper Book (order of the Tribunal in assessee s own case (ITA 422/PN/2003 and ITA 454/PN/2005) and stated vide paras 22 to 25 of the order, an identical issue in the assessee s own case was adjudicated in favour of the assessee. As per the said Tribunal order, actuarial valuation of warranty provision based on the past experience constitutes reasonable basis for estimation of the provision of warranty as held by the Apex Court in the case of Bharat Earth Movers (supra) in regard to the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D relates to claim of deduction under section 80HHC of the Act on the interest income when the said income was undisputedly treated as income from other sources . This issue is covered by the SC judgment in the case of Pandian Chemicals as well as Delhi High Court judgment in the case of Shriram Honda Power Equip (289 ITR 475)(Del) for the proposition that the such interest receipts do not constitute business receipts and therefore, they are not taxable under the head income from other sources . Once the interest receipts are outside the scope of the head of income ie profits and gains from the business or profession , the law does not permit grant of deduction in respect of such income taxable under the head income from other sources. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as indicated in the chart above against Ground E. Considering the above view taken by us and by various jurisdictional High Court judgments as well as the Supreme Court judgment in the case of Jyoti Ltd (supra)., we are of the opinion that the assessee must succeed on this issue. Accordingly, Ground E with its sub-grounds are allowed. 9. In the result, appeal of the assessee is partly allowed. ITA No. 1203/PN/2009 (Revenue s Appeal) 10. The only issue agitated before us by the Revenue relates to granting of additional depreciation on the computers used in the manufacturing process. In this regard, Ld. Counsel relied on the Jharkhand High Court judgment in the case of TRF Ltd. v/s. CIT [2008], 298 ITR 78 and mentioned that the co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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