Tribunal allows depreciation claim on properties, directs verification of deductions. Disallowance upheld on leasehold land premium.

The Tribunal allowed the assessee's claim for depreciation on residential properties and directed verification of standard deduction under Section 24(a). Disallowance of amortization of premium paid on leasehold land was upheld as capital in nature. The issue of disallowance under Section 14A was restored for recomputation. Various other disallowances were either upheld or restored for fresh adjudication by the Assessing Officer. The Tribunal's judgment provided clear directions for re-computation and verification in line with relevant judicial precedents, partially allowing the appeals.

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Issues Involved:
1. Disallowance of Depreciation on Residential Properties
2. Disallowance of Amortization of Premium Paid on Leasehold Land
3. Disallowance under Section 14A
4. Disallowance of Lease Equalization Charges
5. Disallowance of Depreciation on Toll Road
6. Addition of Notional Interest Income from Toll Road
7. Disallowance under Section 14A while Computing Book Profits under Section 115JB
8. Levy of Interest under Sections 234B and 234D
9. Addition based on AIR Transactions
10. Disallowance of Interest on Loan to IL&FS Employees Welfare Trust
11. Disallowance of Software Development Expenditure
12. Disallowance of Payments to Clubs
13. Disallowance under Section 40(a)(ia) for Short Deduction of TDS
14. Disallowance of Deduction under Section 36(1)(viii)
15. Adjustment of Lease Equalization Reserve while Computing Book Profits under Section 115JB

Detailed Analysis:

1. Disallowance of Depreciation on Residential Properties:
The Tribunal allowed the assessee's claim for depreciation on residential properties, following its own decisions for previous assessment years (A.Y. 2004-05 to 2007-08). The Tribunal directed the Assessing Officer to verify if the assessee claimed standard deduction under Section 24(a) and to disallow depreciation if such deduction was claimed.

2. Disallowance of Amortization of Premium Paid on Leasehold Land:
The Tribunal upheld the disallowance of amortization of premium paid on leasehold land as capital in nature, following its own decisions for previous years (A.Y. 2004-05 to 2007-08).

3. Disallowance under Section 14A:
The Tribunal restored the issue to the Assessing Officer to re-compute the disallowance under Section 14A, considering the principles laid down in previous decisions and the Special Bench decision in ACIT v. Vireet Investments Private Limited.

4. Disallowance of Lease Equalization Charges:
The Tribunal restored the issue to the Assessing Officer to decide afresh, considering the method prescribed by the ICAI and the decision of the Hon'ble Supreme Court in the case of Virtual Soft Systems Ltd.

5. Disallowance of Depreciation on Toll Road:
The Tribunal directed the Assessing Officer to allow depreciation on the toll road as intangible assets, following its own decisions for previous years.

6. Addition of Notional Interest Income from Toll Road:
The Tribunal restored the issue to the Assessing Officer to follow the directions given in previous years (A.Y. 2004-05 to 2007-08) and decide accordingly.

7. Disallowance under Section 14A while Computing Book Profits under Section 115JB:
The Tribunal directed the Assessing Officer to re-compute the disallowance under Section 14A while computing book profits under Section 115JB, following the Special Bench decision in ACIT v. Vireet Investments Private Limited.

8. Levy of Interest under Sections 234B and 234D:
The Tribunal held that the levy of interest under Sections 234B and 234D is consequential and restored the issue to the Assessing Officer to decide in accordance with law.

9. Addition based on AIR Transactions:
The Tribunal restored the issue to the Assessing Officer for verification, directing the Assessing Officer to provide necessary information to the assessee for reconciliation of transactions.

10. Disallowance of Interest on Loan to IL&FS Employees Welfare Trust:
The Tribunal upheld the disallowance to the extent of Rs. 11 Crores, as the assessee could not substantiate that the loan was for business purposes.

11. Disallowance of Software Development Expenditure:
The Tribunal upheld the decision of the CIT(A) allowing the software development expenditure as revenue in nature, following its own decisions for previous years.

12. Disallowance of Payments to Clubs:
The Tribunal directed the Assessing Officer to delete the disallowance of payments to clubs, following the decision of the Hon'ble Bombay High Court in the assessee's own case for A.Y. 1997-98.

13. Disallowance under Section 40(a)(ia) for Short Deduction of TDS:
The Tribunal held that there cannot be any disallowance under Section 40(a)(ia) for short deduction of TDS, following the decision of the Calcutta High Court in the case of CIT v. S.K. Tekriwal.

14. Disallowance of Deduction under Section 36(1)(viii):
The Tribunal upheld the decision of the CIT(A) allowing the deduction under Section 36(1)(viii), as the assessee fulfilled the conditions of the section.

15. Adjustment of Lease Equalization Reserve while Computing Book Profits under Section 115JB:
The Tribunal restored the issue to the Assessing Officer to re-compute the book profits, following the directions given in previous years and the decision of the Hon'ble Supreme Court in the case of Virtual Soft Systems Ltd.

Conclusion:
The Tribunal's judgment addressed multiple issues raised by both the assessee and the revenue, providing clear directions to the Assessing Officer for re-computation and verification in accordance with previous decisions and relevant judicial precedents. The appeals were partly allowed, with several issues restored to the Assessing Officer for fresh adjudication.

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