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of <h1>Tribunal upholds CIT(A) decisions on commission, insurance premium, and depreciation.</h1> <h3>Dy. Commissioner of Income Tax Circle 3 (1), New Delhi Versus M/s. CTI Shipbrokers India Pvt. Ltd.,</h3> The Tribunal dismissed the Department's appeal, upholding the CIT(A)'s decisions on all three issues: addition of commission and ex-gratia paid to ... - Issues involved: Addition of commission and ex-gratia paid to Director, disallowance of insurance premium, disallowance of extra depreciation on computer peripherals/accessories.For the first issue, the AO added a sum on account of commission and ex-gratia paid to the Director, citing non-applicability of section 36(1)(ii) of the I.T. Act. The CIT(A) deleted the addition, leading to the appeal. The Department argued that the provisions of section 36(1)(ii) were applicable, while the assessee's counsel justified the payments as part of the Director's remuneration. The Tribunal found that the payments were approved by the Board of Directors and were not connected to dividend payments, thus rejecting the appeal.Regarding the second issue, the AO disallowed an insurance premium payment as it pertained to a later assessment year. The CIT(A) deleted the disallowance, stating that the amount became due in the relevant year. The Department contended that the premium was deposited in a subsequent year, but the assessee's counsel explained the due date and grace period for the payment. The Tribunal upheld the CIT(A)'s decision and rejected the appeal.On the third issue, the AO disallowed extra depreciation on computer peripherals/accessories, allowing only 15% depreciation. The CIT(A) allowed the claim based on a Delhi High Court decision. The Department relied on the assessment order, while the assessee cited the High Court decision. The Tribunal upheld the CIT(A)'s decision, stating that computer accessories and peripherals are integral to the computer system and entitled to higher depreciation.In conclusion, the Tribunal dismissed the Department's appeal, upholding the CIT(A)'s decisions on all three issues.
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