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2016 (5) TMI 1008 - ITAT AHMEDABADClaim of depreciation on the purchases of computers - Held that:- In our considered opinion, the circumstantial evidences are in favour of the assessee. The revenue’s rejection of the claim of depreciation is only based on the statements of Parikh couple who were not allowed to be cross examined by the assessee; therefore, their statements are in complete violation of principles of natural justice. On the basis of circumstantial evidences mentioned elsewhere, we are of the opinion that the assessee had purchased computers and is eligible for the claim of depreciation. We accordingly set aside the findings of the ld. CIT(A) and direct the A.O to allow the claim of depreciation - Decided in favour of assessee. Disallowance of interest expenses - Held that:- There is no dispute that the disallowance is based upon the findings given in the first round of litigation. Since we have held the purchase of computers to be genuine as per our detailed decision/discussion qua first grievance of this appeal. We have no hesitation to hold that the money has been borrowed for the purposes of business and, therefore, any interest paid thereon has to be allowed as business expenditure - Decided against assessee. Disallowance of deffered revenue expenditure - Held that:- We find that the assessee has strongly contended that it has not floated any public issue nor invited any share application from anybody, neither during the year under consideration nor in the subsequent years. Therefore, there is no question of incurring expenditure on increase of the share capital. We do not find any adverse inference/findings by the lower authorities in so far as this claim of the assessee is concerned. Since the assessee is a body corporate it has to incur various expenditures before the Registrar of companies. There is no adverse finding by the lower authorities that the expenditure was not incurred for the purposes of business. We, therefore, do not find any reason/basis for disallowing the same. We accordingly direct the A.O to delete the addition - Decided in favour of assessee Disallowance of foreign travelling expenses - Held that:- There is no dispute that the assessee did not furnish complete details of the claim of foreign travel expenditure which it claimed through its computation of income. Even before us no demonstrative evidences have been brought on record to justify the claim in the computation of income. In the absence of any demonstrative evidence, the claim of the assessee is rightly denied by the revenue authorities - Decided in favour of assessee. Disallowance of octroi payment - Held that:- We fail to understand why the amount has been disallowed in the present litigation. Once, it has been accepted that it is a capital expenditure forming part of the cost of the Hardware; the A.O should have allowed depreciation on it. We, accordingly direct the A.O to allow depreciation on the additional octroi duty of ₹ 1,71,000/- being treated as capital expenditure Disallowance of bad debts - Held that:- No doubt that as per the ratio laid downin the case of TRF Ltd [2010 (2) TMI 211 - SUPREME COURT ] the assessee need not give the reasons for the write off but at the same time the assessee has to demonstrate that the debt has been taken on the income side in the earlier years as per the provisions of Section 36(2) of the Act, no such demonstrative evidence has been furnished, neither before the lower authorities nor before us. We, therefore, decline to interfere with the findings of the ld. CIT(A)- Decided against assessee. Disallowance of payment of PF/ESI - Held that:- We direct the A.O to delete the additions after verifying that employees contribution were paid before the due date for filing the return of income as decided by the Tribunal in assessee’s own case for A.Y. 2002-03 - Decided in favour of assessee by way of remand.
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