TMI Blog2010 (7) TMI 1023X X X X Extracts X X X X X X X X Extracts X X X X ..... ase, the decision of Ld. CIT(A) deleting penalty u/s 271(1)(c) of the Act of ₹ 569625/- with regard to quantum addition of commission paid to directors u/s 36(1)(ii) of the Act, by holding that the quantum addition upon which this penalty has been imposed has been deleted by the ITAT, is not acceptable. Since the decision of the Hon ble ITAT in the quantum addition has been contested by the department, therefore further appeal against deletion of penalty u/s 271(1)(c) is recommended. 3. Learned counsel for the assessee at the out set contends that addition made by the AO, based on which the AO levied penalty in question u/s 271(1)(c), has been deleted by the ITAT vide its order dated 24-4-2009 in quantum appeal being ITA no. 3863 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T rules allows 60% depreciation only on computer and computer software. 8. Learned counsel for the assessee in respect of first ground contends that CIT(A) has deleted the disallowance made by AO u/s 36(1)(ii) relying on Tribunal s order in assessee s own case for A.Y. 2003-04, by following observations: On careful consideration, I find that the issue is decided in favour of the appellant by the decision of Hon ble ITAT for assessment year 2003-04 in assessee s own case. Respectfully following the same, the addition is directed to be deleted. 8.1. Learned counsel has also filed a copy of Tribunal s order dated 24-4-2009 rendered in ITA no. 3863/Del/07 in assessee s own case for A.Y. 2003-04, wherein the ITAT has deleted disal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incorrect to hold that bonus or commission shall not form part of salary or remuneration. In accordance with the provisions of section 36(1)(ii), any sum paid to an employee as bonus or commission for services rendered where such sum would not have been payable to him as profit or dividend if it had not been paid as bonus or commission is allowable. The sum paid to the directors is as an employee of the company. The bonus or commission is payable for the services rendered and are in accordance with the terms of employment. The directors are not only shareholders of the company. Out of the total share capital of ₹ 73,50,000/-, Mrs. Malati Kanodia holds share worth ₹ 15,02,000/- only. Shri Rajeev Bohra is not even a shareholder. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporation of India Ltd. in ITA no. 2851 and 3680/Del/2007. 3.3. I have carefully considered the submissions of Ld. AR and have gone through the observations of the Assessing Officer. In light of the decision of Hon ble Delhi ITAT, cited by ld. AR, and also in light of the decision of Hon ble Kolkata ITAT in the case of ITO vs. Samiran Majumdar 98 ITD 119, I hold that the computer accessories and peripherals are integral part of the computer and depreciation is allowable @ 60%. The addition made by the Assessing Officer is, therefore, directed to be deleted. 8.4. It was pleaded that CIT(A) has rightly held that computer accessories and peripherals are eligible for depreciation @ 60%. Order of CIT(A) was relied on. 9. The lear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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