TaxTMI 
TaxTMI 
2017 (5) TMI 1848
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....hat the appellant company engaged in the business of retailing in books, music, stationery and gift articles, filed its return of income for the relevant assessment year declaring the total loss of Rs. 2,31,34,707/-. The return was processed and after scrutiny assessment order was passed determining the total loss of Rs. 1,24,51,400/-. The AO made disallowance of Rs. 12,12,411/- u/s 14A, disallowance of Rs. 64,88,000/- with regard to customer loyalty programme out of total provision of Rs. 125.67 lacs and disallowance of depreciation of Rs. 10,26,428/- on computer peripherals & accessories and Rs. 4,17,549/- on computer software. The assessee challenged the assessment order before the Ld. CIT (A). So far as the addition made u/s 14A of the ....
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....Ld. CIT(A) erred in directing the AO to allow the depreciation @ 60% instead of @ 15% on computer peripherals & accessories ignoring the fact that the same should be classified under the head block of Plant & Machinery. 4. On the facts and in the circumstances of the case and in law the Ld. CIT(A) erred in directing the AO to allow the depreciation @ 60% instead of @ 25% on computer software ignoring the fact that the software is not the part of the computer as same is characteristics of intangible asset." 4. Ground No. 1 pertains to disallowance u/s 14A of the Act. Before us, the Ld. Departmental Representative (DR) relying on the assessment order submitted that since the assessee has not categorized the expenses incurred for e....
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....sessee's own case (supra) on the identical issue, we do not find any reason to interfere with the same. Hence, we dismiss this ground of appeal of the revenue. 8. Ground No. 2 pertains to disallowance of addition of Rs. 64.88 lacs made by the AO with regard to customer loyalty programme out of total provision of Rs. 125.67 lacs. The Ld. DR submitted that since there is no certainty regarding redemption of points, the AO has rightly made the disallowance in question. Hence the Ld. CIT(A) ought to have sustained the said disallowance. 9. Per contra, the Ld. Counsel for the assessee submitted that this issue has already been decided in favour of the assessee in assessee's own case for the assessment year 2009-10 by the Ld. CIT(A). Since,....
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....Department the ITAT held that it is ascertained liability and deleted the disallowance. "Similar issue has come in the case of Jet Airways for a frequent flyer programme of Jet Airways which awarded the reward points. The ITAT held that it is an ascertained liability, expenditure has to be allowed." Following the above decision, I allow the reward points allotted by the Landmark during the year as ascertained liability. Expenditure by the appellant can be allowed as ascertained liability. Hence appellant's this ground of appeal is allowed." 11. The Ld. CIT(A) has decided the identical issue in favour of the assessee following the view taken by the Ld. CIT(A) in assessee's own case for the assessment year 2009-10. We, therefore, ....
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....e." Following the decision of Hon'ble ITAT, Mumbai appellant's claim is allowed. The A.O. is directed to allow appellant 60% depreciation on computer accessories, hence, addition made by the A.O. is deleted. This ground of appeal is allowed." 14. Since, the Ld. CIT(A) has already decided the identical issue in favour of the assessee in assessee's own case for the assessment year 2008-09 and the Ld. CIT(A) has followed the same, there is no reason to interfere with the same. We, accordingly, uphold the findings of the Ld. CIT(A) on this issue and dismiss the ground of the appeal of the revenue. 15. Ground No. 4 pertains to depreciation on software licenses. The Ld. DR relying on the assessment order contended that depreciat....