9911796707
TMI Blog1997 (2) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... tion expenses are not in the nature of perquisites. This ground of appeal stands covered by the Tribunal order for the asst. yr. 1986-87 in the case of the assessee itself. After examining the facts of this ground of appeal, it is held that the expenses in question are wholly and exclusively incurred for business purposes and are fully allowable. Following the decision of the ITAT for the asst. yr. 1986-87 in ITA Nos. 2977/Del/1990 and 3019/Del/1990 dt.15th May, 1995the additions are deleted. 5. The next ground of appeal is in regard to addition of 25 per cent of telephone expenses under s. 40A(5), disallowances of servant's wages, salary, bonus, etc. This ground of appeal also stands covered by the Tribunal order for the asst. yr. 1986-87. Following the decision of the Tribunal for earlier assessment year in the case of the appellant itself these additions are also directed to be deleted. 6. The next ground of appeal is in regard to confirming the addition of Rs. 2,96,839 being incentive awards payment by the assessee to the employees and staff working in the factory and inDelhioffice for achieving higher sales. The CIT(A) has confirmed this disallowance. The claim of the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... horised Representative of the appellant submits that the expenses in question was incurred for hiring coolers, fans, air-conditioners for the building and office of the appellant company. It is also submitted that this type of expenditure is being incurred by the appellant year after year. After examining the facts of this ground of appeal, we are of the opinion that the expenditure claimed by the appellant on this account is allowable in nature. This addition is, therefore, deleted. 10. The next ground of appeal is in regard to disallowance of car expenses on the ground that they are for the alleged personal use of the directors. The learned Authorised Representative, however, argues that the expenses were incurred wholly and exclusively for the purpose of the appellant's business and no personal element involved in this case. It is also submitted that the Tribunal while deciding this ground for the asst. yr. 1986-87 in favour of the assessee, deleted the total addition on this account. After considering the facts of the grounds of appeal, we are of the opinion that there is no reason to deviate from the decision of the Tribunal for the immediately earlier assessment year. This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the subject-matter of appeal for the immediately earlier assessment year before the Tribunal. The Tribunal after examining this ground of appeal in detail held that the expenditure on travelling of Mrs. Ingham is not for business purposes and that part of the addition was sustained. Following the decision of the Tribunal, the disallowance of Mrs. Ingham amounting to Rs. 1,14,148 is sustained and the balance of Rs. 40,686 is deleted. 14. The last ground of appeal is in regard to disallowance of Rs. 3,63 on account of payments to clubs. This ground was also discussed by the Tribunal while deciding the appeal for the asst. yrs. 1982-83 and 1986-87. Following the decision of the Tribunal in earlier years, the addition on this account is held as unjustified and hence deleted. ITA No. 3865/Del/1990; asst. yr. 1987-88: 15. This appeal is preferred by the Revenue against the order of the CIT(A). 16. The first ground of appeal is in regard to deletion of addition by the CIT(A) of the value of HRA paid to employees, wages provided to employees, expenditure on residential telephone Rs. 40,689, on account of reimbursement of medical expenses Rs. 11,706, group personal insurance fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It was, however, observed that no depreciation was claimed by the appellant on guest-house assets. The disallowance was, therefore, restricted to Rs. 45,260 only. The further disallowance of Rs. 59,740 by the AO was, therefore, held as unjustified by the CIT(A) and hence deleted. The action of the CIT(A) on this account is held as reasonable and justified. No interference being made on this account. ITA No. 4502 ( Del )/1991; asst yr. 1987-88: 21. This appeal is preferred by the appellant-assessee taking various grounds of appeal. 22. The first ground relates to disallowance of Rs. 5,92,746 (Rs. 9,58,280) minus Rs. 3,65,534) on account of royalty payable on the ground that the contract to pay royalty has not been renewed. This has resulted in an excess assessment of Rs. 5,92,746. The facts of this ground of appeal are that: The agreement for payment of royalty expired on31st March, 1986. The assessee, therefore, applied to the Govt. of India for seeking permission for payment of royalty. For the balance accounting period starting from1st April, 1986to30th Sept., 1986. The permission of the Govt. of India came much after the finalisation of accounts. The assessee, howev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... naccounted for. 24.1 We have examined the facts of this ground of appeal. The AO has disallowed the claim of the assessee without fully examining the accounts of this amount. The AO is, therefore, directed that he should examine with reference to the total expenditure whether this amount has already been considered by the assessee while claiming total expenditure and if the same has not been claimed, this would be fully allowable particularly when we have held the expenditure as revenue in nature. This ground of appeal is, therefore, restored to the file of the AO for doing the needful. 25. The last ground of appeal is in regard to non-allowance of depreciation in full on additions to electric equipments, car and cycles comprising of items costing less than Rs. 5,000 which is said to have resulted in lower depreciation allowance of Rs. 13,972. All items are of capital in nature costing below Rs. 5,000 are to be allowed at the 100 per cent of the value in the year of acquisition itself. The claim of the appellant that the expenditure is on building, and purely on plant and machinery, the same should be allowed in toto. The argument of the learned Authorised Representative seems ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
