2020 (5) TMI 590

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....rporation("the assessee"), Revenue preferred this appeal. The assessee has also filed cross-objections on the ground that provisions of section 115JB are not attracted in the case of assessee, as the assessee is not covered by Companies Act. 2. Brief facts of the case are that the assessee Corporation is an Authority constituted under the law for marketing of agricultural produce and derives bulk of its income from the letting out of godowns or warehouse for storage and processing the marketing of commodities etc. For the assessment year 2012-13, they have filed return of income on 28/09/2012 declaring normal income at Rs. 2,06,15,25,500/- and book profit of Rs. 1,74,80,38,493/- under section 115JB(MAT) of the Income-tax Act, 1962 ("t....

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....f revenue expenditure and should be allowed accordingly u/s. 37(1) of the Act, considering the life expectancy, the level of efficiency and use of material for such Dunnage. The ld. CIT(A), therefore, accepted the contention of the assessee and deleted the addition of Rs. 1,95,32,194/-. 5. In respect of disallowance of Rs. 92,76,786/-, the claim for depreciation on the license/registration fee paid to Indian Railways, it is the finding of the ld. CIT(A) that the assessee had deposited the amount of Rs. 50 crores as license/registration fee to the Government of India, Ministry of Railways for running container trains and the assessee claimed depreciation @25% amounting to Rs. 3,52,31,426/- treating the said fee as intangible asset whereas....

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....capital assets and expenditure debited by the assessee in the profit and loss account on investment in ordinary Dunnage are of capital nature and therefore, cannot be allowed as Revenue expenditure. 8. So also, it is the submission of the ld. DR that even though the amount of Rs. 50 crores was paid towards license/registration fee, such benefits under the license/registration fee are likely to be accrued during the period of 20 years and therefore, it has to be treated as deferred revenue expenditure in the books of the assessee. Since the benefit under the license feel is for a determined period of 20 years, the assessee should have claimed deduction of such Rs. 50 crores over a period of 20 years @ 2.5 crores per year and therefore, th....

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....e decision of the Tribunal on these two aspects, the ld. AR submits that there is no perversity in the findings of the ld. CIT(A) and the same cannot be disturbed. 11. We have perused the record in the light of submissions made on either side. At the outset, there is no dispute that the assessee has been using two types of Dunnage, though for the same purpose, but with two different life times, namely, the special Dunnage having life time of more than five years, whereas the ordinary Dunnage has to be used only for one year and un-usable thereafter. It is also not in dispute that the assessee has capitalized the expenditure on the special Dunnage in their accounts and has been claiming depreciation @ 16% per annum over the useful period ....