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TMI Blog2020 (7) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... & in law, the ld CIT(A) erred in deleting the provision of excess depreciation of Rs. 68,71,008/- ignoring the facts that the disallowance of excess depreciation was not crystallized during the year under consideration. 2. Whether on the facts and circumstances of the case and in law the ld CIT(A) erred in directing the AO to consider the additional claim of deduction on account of employee compensation expenses amounting to Rs. 1.79 crores, rejected by the AO." 3. The brief fact of the case is that the assessee is a company engaged in the business of stock and shares broker of NSE and BSE. It filed its return of income on 29.09.2012 at Rs. 29227870/-. The assessment u/s 143(3) of the Act was passed on 25.03.2015 determining total incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee is eligible for deduction @60%. The connected dispute with respect to the same deduction was the amount of cost of the asset on which depreciation is to be allowed. As mentioned by the ld CIT (A) according to the ld AO the software purchased was of Rs. 21 laks and not Rs. 20681452/-. Thus the ld CIT (A) on Principle held that software depreciation has to be allowed @60% however, he directed the ld AO to verify the amount of actual cost of the asset on which depreciation is to be allowed. 6. On the second issue of ESOP expenses the ld CIT(A) allowed the claim of the assessee following the order in case of Biocon Ltd 2013] 35 taxmann.com 335 (Bangalore - Trib.) (SB)/[2013] 25 ITR(T) 602 (Bangalore - Trib.) (SB)/[2014] 144 ITD 21 (Bang ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses following the decision of the special bench and therefore the revenue cannot be aggrieved. With respect to the depreciation, he submitted that the ld CIT (A) has in principle held that the assessee is eligible for deduction of deprecation @60% on software. However, for the purpose of computation of actual cost he directed the ld AO to verify the same. He therefore submitted that there is no grievance to the revenue. 9. We have carefully considered the rival contentions and orders of the lower authorities. As far as ground No. 1 is concerned, we find no infirmity in the order of the ld CIT (A) in upholding that depreciation on software is allowable @60%. However, for working out actual block of asset on which depreciation is to be allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sis. The claim is apparently not in tune with the ratio of Biocon case relied on, where the claim is allowable on straight line basis. The AO has to restrict the claim of deduction on the same basis and as regards the disallowance that may follow, the AO may consider the claim in other years (including earlier years) and as per law, when such a claim is made by the appellant." 11. On careful analysis of the order of the ld CIT (A), we find no infirmity in his direction as far as in principle, he allowed the claim of the assessee and directed the ld AO to compute the deduction of ESOP expenses by following the decision of the special bench of ITAT in case of Biocon Ltd 35 Taxmann.com 335. However, carefully looking to the claim of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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