TMI Blog2018 (4) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... e ld. CIT(A) that salary paid to C.S. Christian, which works out to ₹ 40,713/- is upheld. Therefore, we upheld the decision of the ld. CIT(A) and we are not incline to interfere in the order passed by the ld.CIT(A). Thus, this ground of revenue is dismissed. Disallowance of sales promotion expenses - Held that:- Assessee had purchased gift items and gave as momentous to the customers of the clients; and expenditure incurred was insignificant as the turnover of the appellant is around ₹ 31 crores; majority of the payment were made through credit card and export turnover of the assessee had gone up from ₹ 10.8 crores in the previous year to ₹ 12.54 crores in the current year. Disallowance of Motor Car depreciatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laris Life Science Ltd, 326 ITR 251 as same was rendered on different facts. ( 3) The ld.CIT(A) has erred in law and on facts in deleting the addition to the extent of ₹ 10,50,282/- out of disallowance of ₹ 10,90,995/- u/s.14A of the Act. ( 4) The ld.CIT(A) has erred in deleting the disallowance of excess depreciation of ₹ 12,634/~ on office equipment without appreciating the fact that the assessee has claimed depreciation @15% on office equipment instead of allowable depreciation of 10%. ( 5) The ld.CIT(A) has erred in deleting the disallowance of sales promotion expenses of ₹ 82,555/- despite the fact that these expenses are not related to business of the assessee and personal in nature. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has made investment of ₹ 18,94,33,151/- as on 31.03.2011. The assessee has claimed interest of ₹ 9,440/-. In addition to this, some administrative/other expenses are also admitted to be incurred to earn tax free income. In this regard the assessee vide letter dated 16.12.2013 was show caused to explain as to why disallowance u/s.14A r.w. rule 8D should not be made. 4.1 In reply to the show cause notice, the assessee has submitted in the letter which reads as under:- The assessee company has earned dividend income of ₹ 51,68,750/- which is claimed exempt u/s.10(33) of the I.T. Act, 1961. The assessee company submits that no investment is made out of borrowed funds. Share Capital and Reserve Funds as on 31.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s'. These items clearly fall under 'Furniture Fixtures' instead of Plant Machinery on which depreciation is available @15%. Accordingly, vide letter dated 16.12.2013, the assessee was requested to let this office know as to why depreciation should not be, restricted to 10% only, The assessee, vide submission dated 31.12.2013, submitted as under:- Depreciation on Office Equipment is claimed @15% on WDV ₹ 1,67,086/- As per I.T. Rules, rate of depreciation on Office Equipment is 15% and not 10% which is prescribed for Office Furniture . 5.1 But ld. AO was not satisfied with the reply filed by the assessee and he made an addition of ₹ 12,604/- 6. It is further observed from the details of Sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax (Eleventh Amendment) Rules 2009 312 ITR(ST)330. 7.1 But ld. AO was not satisfied with the contention of the assessee and he made and addition of ₹ 8,38,246/-. 8. Against the said order assessee preferred first statutory appeal before the ld.CIT(A) who partly allowed the appeal of the assessee. 9. We have gone through the relevant record and impugned order. So far as ground no.1 related to disallowance of ₹ 76,43,540/- made u/s.35(2AB) of the Act is concerned. Assessee would be entitled to deduction u/s.35(2AB) in the year under consideration, even thought the registration/recognition is accorded by the DSIR in the subsequent assessment year. Hon ble Delhi High Court has held in the matter of CIT VsSandan Vik ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch works out to ₹ 40,713/- is upheld. Therefore, we upheld the decision of the ld. CIT(A) and we are not incline to interfere in the order passed by the ld.CIT(A). Thus, this ground of revenue is dismissed. 11. So far disallowance of excess depreciation of ₹ 12,634/- on office equipment is concerned. Ld. AO has discussed the same in his order at Para No.4 and Ld. CIT(A) has discussed in Para No.6.2. In this regard, assessee had purchased gift items and gave as momentous to the customers of the clients; and expenditure incurred was insignificant as the turnover of the appellant is around ₹ 31 crores; majority of the payment were made through credit card and export turnover of the assessee had gone up from ₹ 10.8 cr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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