Tribunal Overturns Depreciation Disallowance, Upholds Loan Proof. Section 43B Dismissed. Evidence-based Decisions.

The Tribunal admitted appeals delayed by the pandemic for adjudication. Disallowance of depreciation on intellectual property rights for 2007-08 was overturned due to evidence. The disallowance for 2008-09 was upheld as license renewal proof was lacking. Disallowance of unsecured loan was deleted as ledger entry proved loan receipt. Disallowance of loan amount credited to account was deleted based on provided evidence. Disallowance under section 43B was dismissed. The appeal for 2007-08 was allowed, while for 2008-09, it was partly allowed due to lack of renewal evidence. The Tribunal made decisions based on presented evidence and lower authorities' findings.

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Issues:
1. Disallowance of depreciation on intellectual property rights for assessment years 2007-08 and 2008-09.
2. Disallowance of unsecured loan given by the Director to the company.
3. Disallowance of loan amount credited to the account by cheques for assessment year 2008-09.
4. Disallowance under section 43B.

Issue 1: Disallowance of Depreciation on Intellectual Property Rights:
- The appeals were delayed due to the COVID-19 pandemic, but the Tribunal admitted them for adjudication.
- The dispute was regarding the disallowance of depreciation on intellectual property rights used in the business.
- The Assessing Officer disallowed the claim as the evidence did not prove the purchase of intellectual property rights.
- The Tribunal found evidence supporting the acquisition and usage of the intellectual property rights for the assessment year 2007-08, hence directed the allowance of depreciation.
- However, for the assessment year 2008-09, as the renewal of the license was not furnished, the disallowance was upheld.

Issue 2: Disallowance of Unsecured Loan Given by Director:
- The disallowance of an unsecured loan given by the Director was contested.
- The Assessing Officer treated the unexplained loan as income from other sources.
- The CIT(A) restricted the addition to a specific amount due to lack of proof.
- The Tribunal noted that most details were provided, and the addition was deleted as the loan receipt entry was available in the ledger accounts.

Issue 3: Disallowance of Loan Amount Credited to the Account:
- The Assessing Officer added an amount to the total income as certain credits were not offered for assessment.
- The dispute was over a loan amount from M/s. Shreya Investments routed through the Director's account.
- The CIT(A) restricted the addition to a specific amount, which the Tribunal agreed to delete based on the evidence provided by the assessee.

Issue 4: Disallowance under Section 43B:
- The ground related to disallowance under section 43B was not pressed during the appeal hearing and was dismissed.
- The appeal for the assessment year 2007-08 was allowed, while the appeal for 2008-09 was partly allowed.

This judgment addresses various issues including the disallowance of depreciation on intellectual property rights, unsecured loans, and loan amounts credited to accounts. The Tribunal allowed the appeal for the assessment year 2007-08 but only partly allowed the appeal for 2008-09 due to lack of evidence for renewal of the license. The disallowances were based on the lack of proof of transactions and credits, with the Tribunal making decisions based on the evidence presented by the assessee and the findings of the lower authorities.

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