2025 (7) TMI 1507

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....018-19. 2. The Revenue has raised the following grounds of appeal :- "1. The order of ld. CIT (A) is not correct in law and facts. 2. Whether on the facts and circumstances of the case Ld. CIT (A) is justified in deleting the addition of Rs. 88,67,868/- on account of disallowance of excess depreciation claimed on POS Machine. 3. Whether on the facts and circumstances of the case Ld. CIT (A) is justified in deleting the addition of Rs. 70,55,840/- on account of disallowance of excess depreciation claimed on SAP License. 4. Whether on the facts and circumstances of the case Ld. CIT (A) is justified in deleting the addition of Rs. 9,71,46,262/- on account of disallowance of excess bad debt claimed on whic....

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....ound no 2 raised by the Revenue, the issue of disallowance of Depreciation on POS machine, we observed that the assessing officer has made disallowance of excess deprecation of Rs. 88,67,868/- on POS Machine by holding that POS machine is eligible for depreciation at the rate of 25% instead of 40%. At the time of hearing, Ld DR of the Revenue heavily relied on the findings of Assessing Officer. On the other hand, Ld AR of the assessee relied upon the findings of Ld. CIT(A) in Paras 5 to 9 of ld. CIT(A) order. He further relied upon the decision of Hon'ble Delhi High Court in the case of Pr.CIT vs. Connaught Plaza Restaurant Pvt Ltd (2016) (9) TMI 1485 wherein it is held that POS machine is eligible for depreciation @ 60/40%. 5. Considere....

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....ess Depreciation on SAP License, relevant facts are, the assessing officer has made disallowance of excess deprecation of Rs. 70,55,840/- on SAP License by holding that depreciation on SAP License should be 25% instead of 40%. In appeal, Ld CIT(A) decided the issue under consideration in favour of the assessee. At the time of hearing, Ld DR of the Revenue heavily relied on the findings of AO. On the other hand, Ld AR relied on the findings of Ld CIT(A) and also relied upon the various case laws and submitted a case law compilation wherein it is held that SAP License being a computer software is eligible for depreciation @ 60% or 40%. 8. Considered the rival submissions and material placed on record. We observe that the issue under consid....

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....dited the amount of subsidy receipt as income in earlier years and subsequently the portion of same was not actually received by the assessee. Therefore, ld. CIT(A) allowed the claim by reference to the provisions of section 36(1)(vii) and 36(2) of the Income tax Act, 1961 (for short 'the Act'). Further, the Ld. CIT(A) has sustained the balance addition of Rs. 25,90,391/- by holding that since the assessee has offered the said amount of Rs. 25,90,391/- as income in same year in which bad debts are claimed and not in any of the earlier years the same is not allowable. 10. Considered the rival submissions and material placed on record, we observe that the assessee follows the mercantile accounting system and recorded the subsidy and credit....