TaxTMI 
TaxTMI 
2012 (8) TMI 304
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....systems. The appellant filed return of income for the assessment year 2005-06 admitting Nil income on 30.10.2005. The return of the assessee was processed under section 143(1) on 30.03.2007. Subsequently, the case of the assessee was selected for scrutiny and notice under section 143(2) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") was issued to the assessee. The Assessing Officer vide assessment order dated 20.11.2007 determined the total income of the appellant as Rs. 4,31,30,470/- after making additions in respect of interest on fixed deposits, disallowance of club membership, goodwill, leave encashment and deduction under section 80IB. Aggrieved against the assessment order, the assessee filed an appeal before CIT(A....
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....High Court and Delhi High Court are subsequent to the order of the Tribunal. Therefore, the judgements of the High Courts will prevail over the order of the Tribunal. 4. With regard to leave encashment, the counsel for the assessee submitted that the authorities below have erred in not allowing provision for leave encashment to the tune of Rs. 2,18,735/-. To support his contentions, he relied on the judgement of the Hon'ble Calcutta High Court in the case of Exide Industries Ltd. v. UOI [2007] 292 ITR 470/164 Taxman 9 as well as the order of the Tribunal in the case of Asstt. CIT v. Siemens Building Tech (P.) Ltd. in [IT Appeal No.57 (Mds) of 2011, dated 27.06.2011. 5. The third issue in appeal relates to apportionment of expenses. Th....
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....nt judgements of the Hon'ble Kerala High Court in the case of B. Raveendran Pillai (supra) and the Hon'ble Delhi High Court in the case of Hindustan Coco Cola beverages P. Ltd., (supra) have held that assessee is entitled to depreciation on the value of goodwill. The Hon'ble Division Bench of the Kerala High Court has held that "goodwill is not specifically mentioned in section 32(1)(ii) of the Income Tax Act. Depreciation is allowable not only on tangible assets covered by clause (i) of section 32(1) but on the intangible assets specifically enumerated in clause (ii) and such of the other business or commercial rights similar to the items specifically covered therein." Similarly, the Division Bench of the Hon'ble Delhi High Court has uphel....
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....ssessee, the only ground raised by the assessee is that the CIT(A) has erred in not deleting the disallowance made by the assessing authority in respect of provision of Rs. 93,815/- made for leave encashment as per existing statutory requirement as held by Calcutta High Court in the case of Exide Industries Ltd. v. UOI & Ors (292 ITR 470). On merit, this issue is covered in favour of the assessee by virtue of the decision of the Hon'ble Supreme Court in the case of Bharat Earth Movers v. CIT (245 ITR 428). In law, the issue is again in favour of the assessee by virtue of the decision of the Hon'ble Calcutta High Court in the case of Exide Industries Ltd. v. UOI & Ors. (292 ITR 470) wherein the Hon'ble Court has struck down sec.43B(f) which ....
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.... dated 4.2.2009 in ITA No.611 & 1832/Mds/2007 has observed as under:- "The CIT(A) also has observed that the proportionate allocation made by the assessee-company is not sound and correct, and it cannot be accepted. The CIT(A), therefore, adopted one of the methods of apportionments usual recognized in the matters of allocation of expenditure, that is, on the basis of unit-wise turnover and directed to apportion concerned common expenditures. In the absence of any evidence brought on record by the Assessing Officer, the method adopted by the CIT(A) is sustainable in law. Once the method adopted by the CIT(A) is found to be accepted in law, the quantum modification arising out of the direction of the CIT(A) is only a consequence of a lawf....