TaxTMI 
TaxTMI 
2019 (1) TMI 1962
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....d on facts in directing to allow depreciation @60% on the equipments connected to V-SAT (i.e. Transformer, UPS etc.). 2). The Ld. Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad has erred in law and on facts in restricting the disallowance of administrative expenses u/s.14A of the IT. Act to Rs. 5,00,000/- out of Rs. 56,21,000/- made by the A.O. 3.The Ld. Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad has erred in law and on facts in deleting the disallowance amounting to Rs. 39,08,141/-made by the Assessing Officer on account of payment made in respect of provision for Employee Long-term Compensation Plan (ELTCP). 4.The Ld. Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad has erred in law and on facts....
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.... to the returned income: (i) Disallowance of depreciation @ 60% on equipments connected to V-SAT of Rs. 4,27,545/-. (ii) Disallowance u/s. 14A in the nature of administrative and interest expenditure of Rs. 56,21,000/-. (iii) Disallowance of Rs. 39,08,141/- paid in respect of provision for Employee Long Term Compensation Plan. (iv) Disallowance of Rs. 12,06,824/- for garden expenses. (v) Disallowance of weighted deduction claimed u/s. 35(2AB) of the Act on recurring expenses of Rs. 60.85 lacs related to building, municipal taxes and salary to Mr. C. Dutt. 3. And against the disallowances/additions, assessee preferred first statutory appeal before the ld. CIT(A) who partly allowed the appeal of....
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....efore, as per aforesaid Delhi High Court judgment and in our considered opinion, assessee is entitled for 60% depreciation. Thus, this ground of revenue is dismissed. 10. Now we come to ground no. 2 that ld. CIT(A) has erred in law and on facts in restricting the disallowance of administrative expenses u/s. 14A of Income Tax Act to Rs. 5,00,000/- out of Rs. 56,21,000/- made by the A.O. 11. Ld. A.O. has discussed this issue at page no. 10 to 17 in Para 9 and ld. CIT(A) has discussed at page no.11 to 21 in Para no. 6. 12. In this case, assessee had earned tax free dividend income of Rs. 33.81 lakhs during the year under consideration. And assessee had made investment in Mutual funds, NSC, Investments in foreign subsidiaries and inves....
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....e stated that as the scheme of providing compensation to the employees was framed in the F.Y. 2006-07 w.e.f. F.Y. 2005-06, the provision for such expense was not made in the books of accounts. However, as the said provision pertained to the services rendered by the employees for the F.Y. 2005-06, therefore, assessee had claimed such expenses while computing taxable income under Income Tax Act. 18. As we can see, ld. A.O. had disallowed the provision for leave encashment as no payment has been made against the said provision during the year. In the case of Bharat Earth Movers Hon'ble Supreme Court has held if a liability has been ascertained with a reasonable certainty and the actual quantification is not material to claim the expenditure....
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....ppeal of the revenue is dismissed. 27. Now we come to ground related to capitalize interest on borrowings made for R&D assets and allowing depreciation on motor car. 28. Ld. CIT(A) has discussed at page no. 41 in Para no. 10. As we can see, in assessment year 2005-06, predecessor of the ld. CIT(A) allowed the claim regarding depreciation in respect of motor car and capitalization of interest has been allowed. As ld. CIT(A) has followed earlier year and there is no appeal by the Revenue against the said order. Therefore, we do not want to interfere in the said order. Thus, this ground is dismissed. 29. In the result, appeal filed by the Revenue is dismissed. 30. ITA No. 259/Ahd/2012 Assessee's appeal. The Assessee has taken follo....