TMI Blog2019 (1) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... he findings of the Ld. Commissioner of Income Tax (A). We also note that while reaching his decision, the Ld. Commissioner of Income Tax (A) has placed reliance on the judgment of the Hon’ble Apex Court in the case of Empire Jute Co. (1980 (5) TMI 1 - SUPREME COURT). AO directed to allow depreciation @60% on the customization charges for ERP amounting to ₹ 5,34,683/- and software for tool management - ITA No.4165/Del/2014, C.O. No. 105/Del/2015 - - - Dated:- 4-1-2019 - Shri G.D. Agrawal, Hon ble Vice President And Shri Sudhanshu Srivastava, Judicial Member For the Assessee : S/Shri Sanat Kapoor, Shivansh Pandya, Advs. For the Revenue : Shri G. Johnson, Sr. DR ORDER PER BENCH ITA No. 4165/Del/2014 is the department s appeal preferred against the order dated 19.05.2014 passed by the Ld. CIT (Appeals)-LTU for assessment year 2009-10 whereas the C.O. has been preferred by the assessee for assessment year 2009-10. 2.0 Brief facts of the case are that the assessee company, during the relevant year, was engaged in the business of manufacturing and selling of automobile power-trains and powershift transmissions along with components of heavy duty p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts and the circumstances of the case and in law, the Ld. CIT (Appeals) has erred in deleting the addition of ₹ 73,54,190/-, made by AO on account of price difference in respect of goods transferred to MPEZ (10AA) unit from other units. 5. On the facts and the circumstances of the case and in law, the Ld. CIT (Appeals) has erred in deleting the addition of ₹ 18,40,690/-, by directing to treat the same as revenue expenditure instead of capital as treated by the AO, particularly when the addition on the same issue has been upheld by Ld. CIT (Appeals) in case of the same assessee for AY 2008-09. 6. On the facts and the circumstances of the case and in law, the Ld. CIT (Appeals) has erred in deleting the addition of ₹ 76,708/-, made by the AO on account of disallowance of claim of depreciation @ 60% on UPS out of total addition of ₹ 1,46,892/-. 7. The appellant craves leave to, add to, alter, amend or vary from the above grounds of appeal at or before the time of hearing. 2.2 The grounds raised in the CO are as under: 1. That the CIT(Appeals) has grossly erred in law and on facts in upholding the customization charges for ERP of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ITAT for the immediately preceding year. 5.1 On ground nos. 5 and 6, reliance was placed on the findings and observations of the Assessing Officer. 6.0 With respect to the C.O. of the assessee, the Ld. Sr. DR again placed reliance on the findings of both the lower authorities and argued that the concurrent findings of the lower authorities supported the department s case. It was prayed that the C.O. of the assessee deserves to be dismissed. 7.0 We have heard the rival submissions and perused the material available on record. As far as ground nos. 1, 2, 3 and 4 of the department s appeal are concerned, it is seen that the issue is squarely covered in favour of the assessee by the order of ITAT in assessee s own case for assessment year 2008-09 (supra) and the relevant observations and findings are contained in paragraphs 8 to 15 of the said order. The same are being reproduced here in under for ready reference:- 8. Hon'ble Apex Court in CIT vs. Yokogawa India Ltd . (supra) has decided the issue in controversy in favour of the assessee after examining Circulars No.794 dated 09.08.2000, No.1 dated 17.01.2013 and Circular No.7 dated 16.07.2013 by framing the fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dertaking'. 18. For the aforesaid reasons we answer the appeals and the questions arising therein, as formulated at the outset of this order, by holding that though Section 10A, as amended, is a provision for deduction, the stage of deduction would be while computing the gross total income of the eligible undertaking under Chapter IV of the Act and not at the stage of computation of the total income under Chapter VI. All the appeals shall stand disposed of accordingly. 10. Even para 5.2 of Circular No.7 dated 16.07.2013 is also categoric enough to decide the issue in controversy and para 5.2 thereof is extracted as under for ready perusal :- 5.2 The income computed under various heads of income in accordance with the provisions of Chapter IV of the IT Act shall be aggregated in accordance with the provisions of Chapter VI of the IT Act, 1961. This means that first the income/loss from various sources i.e. eligible and ineligible units, under the same head are aggregated in accordance with the provisions of section 70 of the Act. Thereafter, the income from one ahead is aggregated with the income or loss of the other head in accordance with the provisions of sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ermined against the Revenue. 15. Since grounds no.2, 3, 4 5 are offshoot of Ground No.1 being the addition on account of allocation of head office expenses; allocation of bank and loan processing charges; bad debts written off and addition on account of goods transferred to 10AA unit, the same have been rightly decided by ld. CIT (A). So, finding no illegality or perversity, the same are determined against the Revenue. 7.1 Accordingly, respectfully following the co-ordinate Bench s order in the assessee s own case for immediately preceding year, on identical facts, we dismiss ground nos. 1 to 4 of the department s appeal. 7.2 As far as ground no. 5 challenging the deletion of addition of ₹ 18,40,690/- pertaining to research and development expenses is concerned, it is seen that the Ld. Commissioner of Income Tax (Appeals) has stated that the assessee has furnished the details of the R D expenses before him. The Ld. Commissioner of Income Tax (A) has also reproduced a chart furnished by the assessee in this regard which gives a detailed break-up of the R D expenses and also gives a brief note about the nature of each item along with the invoice. Thereafter, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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