ITAT Delhi: Appeal partially allowed on amortization, TDS credit. Rule 8D disallowance partially upheld.

The ITAT Delhi partially allowed the assessee's appeal, upholding the disallowance of the amount written off for amortization of lease amount paid towards land based on previous decisions. The issues regarding refund and TDS credit were remitted back to the Ld CIT(A) for proper adjudication. In the revenue's appeal, disallowance under Rule 8D was partially allowed, insurance premium disallowance was dismissed, and the inventory loss claim was allowed with proper evidence. The judgment was pronounced on 13th May, 2011.

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Issues Involved: Cross appeals filed by the assessee and revenue against the order of Ld CIT(A) for assessment year 2007-08.

Assessee's Appeal (I.T.A. No.5292/Del/10):

Grounds of Appeal:
1. Disallowance of amount written off for amortization of lease amount paid towards land.
2. Claiming refund u/s 244A(1)(b) and credit of TDS amount.
3. Dispute over disallowance of lease amount based on previous assessment years' treatment.

Decision:
- Disallowance upheld based on previous ITAT Delhi Bench decisions.
- Refund and TDS credit issues remitted back to Ld CIT(A) for proper adjudication.

Revenue's Appeal (I.T.A. No.5446/Del/2008):

Grounds of Appeal:
1. Addition made under Rule 8D r.w.s. 14A of the IT Act.
2. Disallowance of insurance premium paid.
3. Disallowance of inventory loss claim.

Decision:
- Disallowance under Rule 8D partially allowed based on specific dividend income.
- Insurance premium disallowance dismissed in favor of the assessee.
- Inventory loss claim allowed as supported by documentary evidence and proper disclosure.

Conclusion:
Assessee's appeal partially allowed, and revenue's appeal allowed in part based on the above decisions made by the ITAT Delhi. The judgment was pronounced on 13th May, 2011.

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