TMI Blog2011 (4) TMI 1405X X X X Extracts X X X X X X X X Extracts X X X X ..... 00/- is not revenue expenditure and not having been incurred for the purposes of an ongoing business is erroneous and is opposed to evidences on record. 3. The lower authorities have erred in restricting the allowance for depreciation in respect of UPS system at 20%. It is contended that such UPS system being a part of the computer is eligible for depreciation at the same rate as is applicable to the computer. 4. The above grounds of appeal are independent and without prejudice to one another. Your appellant craves leave to add, alter, amend or withdraw any of the grounds of appeal at the time of hearing. 2. It is pertinent to mention that earlier the appeal filed by the assessee was dismissed in limine on account of failure of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is observed by the Assessing Officer that for an expenditure to be allowed as a revenue expenditure, there should be a direct concern and direct purpose for which the money is laid out and not the remote or indirect result which may possibly motivate or flow from such an expenditure and the assessee was not able to substantiate as to how such expenditure should be allowed as revenue expenditure. 4. Before the CIT (A), it was the case of the assessee that as per terms of the lease deed the entire consideration of ₹ 1.75 crore was paid on the due dates as mentioned in the lease deed. The assessee was required to make annual payment of lease rent for the purpose of use of land as per clause 3 (c). Clause 7 of the lease deed also pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly considered the submissions of learned DR. We have also carefully gone through the assessment order as well as the order passed by the CIT (A). The impugned disallowance has been made by the Assessing Officer on the ground that this expenditure has not been incurred wholly and exclusively for the purpose of business of the assessee. As against that it is the case of the assessee that these expenditures are relating to two payments made to NOIDA Authorities. An amount of ₹ 4,37,500/- is annual lease rent and another amount of ₹ 5,60,000/- is on account of its inability to put up the relevant super structure on the land within the stipulated time. These arguments of the assessee have been recorded in the order of CIT (A). It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interrupted power to run the computer. According to learned CIT (A), the essential parts of the computer are CPU, which processes the data, the key board that enable the input and the monitor that help in reading the input/output. UPS is only a back up mechanism in case of power failure. 8. We have heard ld. DR on this issue who has relied upon the order of Assessing Officer and CIT (A) and we have also carefully gone through the order of Assessing Officer as well as the CIT (A). After due consideration, we find that this issue is now covered by the decision of Hon ble jurisdictional High Court in the case of CIT vs. BSES Rajdhani Powers Ltd. vide order dated 31st August, 2010 in ITA No.1266/2010. A copy of the order is placed on record. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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