TaxTMI 
TaxTMI 
2021 (9) TMI 1591
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.... not appreciating that from A.Y. 2008-09, the disallowance u/s. 14A is required to be computed as per Rule 8D as held, by the Bombay High Court in Godrej & Boyce and the method adopted by the assessee is not a valid method. " 3) "On the facts and. circumstances of the case and in law, the Ld. CIT(A) erred in deleting the disallowance of depreciation on leased assets following the ITATs order in the assessee's case for A. Y. 2012-13 without appreciating that the ownership of the assets in question on which, depreciation had been claimed lied with the lessor and therefore the entitlement of the concomitant benefits are attributable to the lessor and not to the assessee, " 4) "On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in following the ITAT's order in the assessee's case for A.Y. 2012-13 in which the assessee's appeal was allowed only on the ground that the depreciation has been allowed in earlier year without appreciating that the case for each A.Y. is a different case for Income-tax purpose and has to be dealt with differently." 3. When this appeal came up for hearing learned Departmental Representative fairly accepte....
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....see, having suo motu disallowed an amount of Rs. 43,80,000/-, the assessing officer made a net disallowance of Rs. 9,14,40,870/-. Assessee contested the above disallowance beforelearned Commissioner of Income Tax (Appeals). After considering the submissions of the assessee in the context of facts and materials on record, learned Commissioner of Income Tax (Appeals) found that the assessing officer has accepted the disallowance of direct expenses made by the assessee under rule 8D(2)(i). Finally, he found, while deciding the issue in assessee's own case for Assessment Years 2007-08, 2008-09, 2009-10, the Tribunal had not only observed that the assessing officer has not recorded proper satisfaction regarding the disallowance made by the assessee, but also observed that the suo motu disallowance made by the assessee is correct. Thus, following the decision of the Tribunal in the preceding assessment years, learned Commissioner of Income Tax (Appeals) directed the assessing officer to follow the decision of the Tribunal, unless, he brings materials on record to substantiate the disallowance made by him. 4. At the outset, Shri Niraj Sheth, the learned counsel appearing for the ....
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....nd raised is dismissed. 7. In the result, appeal is dismissed. ITA No. 5073/Mum/2019, Assessment Year 2014-15 (Revenue's appeal) 8. The only issue arising for consideration in this appeal is, deletion of disallowance made under section 14A r.w.r. 8D. 9. Facts relating to issue in dispute, except variation in figures, are identical to assessment year 2011-12 decided by us in the earlier part of the order. Therefore, our decision in ITA No.1138/Mum/2007 would apply mutatis mutandis to the present appeal also. Accordingly, we uphold the decision of learned Commissioner of Income Tax (Appeals) while dismissing the ground raised. 10. In the result, appeal is dismissed. ITA No.4693/Mum/2019, Assessment Year 2014-15 (Assessee's Appeal) 11. The only effective ground raised by the assessee reads as under:- 1) The learned Commissioner of Income-tax (Appeals) erred in confirming the disallowance of depreciation of Rs. 1,14,26,646/- on assets taken on finance lease from Hewlett Packard Financial Services Pvt. Ltd. (HPFS). a) The learned Commissioner of Income-tax (Appeals) ["the CIT(A)"] erred in confirming the action of t....
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....reciation in Assessment Years 2013-14, 2016-17 and 2017-18. Further, he submitted, though in Assessment Year 2015-16 the assessing officer did not allow depreciation, but, learned Commissioner of Income Tax (Appeals) has allowed assessee's claim. 14. As regards depreciation on server, storage and accessories procured during the year through an agreement with Hewlett Packard Services Ltd, the learned Counsel submitted, the assessee had incurred the cost and had also paid the insurance premium on the asset. Therefore, assessee is the owner of the asset and eligible to claim depreciation. Further, he submitted, the interest paid on lease has been allowed as business expenditure by the assessing officer. Further, he submitted though in Assessment Year 2015-16 assessing officer did not allow depreciation on this asset, but earned Commissioner of Income Tax (Appeals) allowed it. Whereas, the assessing officer himself has allowed depreciation in Assessment Years 2016-17 and 2017-18. 15. The learned Departmental Representative strongly relied upon the observations of the assessing officer and earned Commissioner of Income Tax (Appeals). 16. We have considered riv....
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....der passed by him in assessee's own case in Assessment Year 2012-13, which now stands reversed by the Tribunal. It is further observed from the material on record, assessee's claim of depreciation in respect of this particular asset has been allowed by learned Commissioner of Income Tax (Appeals) in Assessment Year 2015-16 and by the assessing officer himself in Assessment Years 2016-17 and 2017-18. Keeping in view the decision of the Tribunal in assessee's own case in Assessment Year 2012-13, as referred to above, and also the fact that the claim of depreciation has been allowed in subsequent assessment years, we direct the assessing officer to allow assessee's claim of depreciation on the old asset (server), as claimed. 18. As regards the claim of depreciation on the new server, storage and accessories procured during the year through lease agreement, it is a fact on record that the assessee has incurred the cost of such asset by making payment through instalments. The assessee is also paying interest on lease. The assessing officer, though, has disallowed the depreciation; however, he has allowed the interest paid on lease as business expenditure. On perusal of the mate....