TMI Blog2019 (7) TMI 1496X X X X Extracts X X X X X X X X Extracts X X X X ..... be stated to be an unascertained liability so as to add it back in terms of clause (c) to Explanation 1 to section 115JB - HELD THAT:- We find ourselves in agreement with the aforesaid contention of the assessee that such liabilities cannot be regarded as contingent liability. What is certain is the incurring of liability notwithstanding estimation thereof with reasonable certainty. Although actual quantification may not be always be possible, the liability is in praesenti though it is likely to be discharged at a future date. Similar issue has come up in the case of DCIT vs. Inox Leisure Ltd. [ 2013 (2) TMI 353 - GUJARAT HIGH COURT] where it was held that ascertained liabilities cannot be subjected to the adjustment under clause (c) to e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Appellant : Shri Bandish Soparkar, A.R. For the Respondent : Shri Vinod Tanwani, Sr. DR ORDER PER PRADIP KUMAR KEDIA - AM: The captioned cross appeals have been filed by the assessee and Revenue against the order of the CIT(A)-8, Ahmedabad ( CIT(A) in short), dated 19.01.2017 arising in the assessment order dated 20.01.2016 passed by the Assessing Officer under s. 143(3) of the Income Tax Act, 1961 (the Act) concerning A.Y. 2013-14. 2. The substantive grounds of appeal of the assessee reads as under:- 1. The Ld. Commissioner (Appeal) erred in fact and in law in confirming the disallowance of employees contribution of PF and ESI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bilities cannot be regarded as contingent liability. What is certain is the incurring of liability notwithstanding estimation thereof with reasonable certainty. Although actual quantification may not be always be possible, the liability is in praesenti though it is likely to be discharged at a future date. Similar issue has come up before the Hon ble Gujarat High Court in the case of DCIT vs. Inox Leisure Ltd. (2013) 351 ITR 314 (Guj.) where it was held that ascertained liabilities cannot be subjected to the adjustment under clause (c) to explanation 1 to section 115JB. Thus, we find merit in the grievance of the assessee on this score. Ground No. 2 of the assessee s appeal as noted above is allowed. 6. In the result, assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is issue. The essential controversy involves maintainability of claim of depreciation on cost of goodwill by the assessee. The assessee has claimed certain costs towards goodwill being extra consideration paid towards acquisition of net value of assets of Alps Technologies Ltd. on slump sale basis with a view to acquire its business operations. There can be no quarrel that extra consideration paid for acquisition of assets and the business of a concern represents cost of goodwill. This being so, the assessee would be entitled in law for claim of depreciation thereon in view of the decision of Hon ble Gujarat High Court in the case of DCIT vs. TGB Banquets Hotels Ltd. Tax Appeal No. 470 of 2012 dated 21.06.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part A III of Appendix to Income Tax Rules 1962. He also referred to the decision of ITAT Delhi in the case of Amway India Enterprises (ITAT special bench Delhi)(2008) 111 ITD 0112. The issue in dispute and submission of the appellant is considered. It is noticed that the Hon'ble ITAT, Ahmedabad also in the case of ACIT V. Voltamp Transformer Ltd (ITANo. 1676/Ahd/2012) confirmed the decision taken by the CIT(A) allowing the depreciation @ 60%. In this case CIT(A) decided as under: After considering the explanation of the appellant, I am inclined to accept the view propounded by the appellant. The Income Tax Act does not make any difference between the system software and the application software. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision for Hon ble special bench (specifically para 31.4 of the order) , it is to be seen that the Hon ble special bench has clearly held that when a particular hardware or software is used along with the computers and when their functions are integrated with a computer or in Other words when a device is use as part of a computer or in other words when the device is use as part of the computer in its functions, even though it may be have in user on standalone basis, but still than such hardware or software would be termed as a 'computer'. In view of the detailed finding given by the Hon'ble ITAT Ahmedabad in case of Voltamp Transformer Ltd (supra) and Mumbai special bench in its order of Data Craft India Ltd. an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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