9911796707
TMI Blog1998 (5) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... (SC). 3. The third ground of appeal relates to the deletion of the disallowance of Rs. 3,13,582 by the CIT(A), which was incurred by the assessee for publication of statutory insertion for the purpose of inviting deposits from the public. The learned Departmental Representative relied on the order of the AO. After hearing both the sides we are inclined to agree with the CIT(A). Under law statutory insertions are required to be published in the newspapers for inviting public deposits. These insertions cannot be regarded by any stretch of imagination to be of the character of advertising and publicity. Therefore no question of invoking the provisions of s. 37(3A) arises. This ground of appeal is, therefore, dismissed. 4. The next ground o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en an entirely new plea that these expenses are not incurred on the motor car maintenance but involved the expenditure for the maintenance of repossessed vehicles which does not include any car. He further argued that s. 37(3A) is not applicable to the expenditure which is otherwise allowable under s. 31 of the IT Act. In this regard he relied on the Calcutta High Court decisions in the case of Coates of India Ltd. vs. CIT (1994) 205 ITR 373 (Cal) and in the case of CIT vs. Price Water-house (1994) 207 ITR 564 (Cal) and in the case of CIT vs. Tungabhadra Industries Ltd. (1994) 207 ITR 553 (Cal). The learned Departmental Representative relied on the order of the AO and argued that the plea taken by the assessee s authorised representative is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clude from its purview the expenditure of the nature allowable under ss. 30 to 36. Sec. 37(1) deals with the allowance of the expenditure except the expenditure which is otherwise allowable under ss. 30 to 36. The non obstante clause does not give the interpretation by which the applicability of limiting the allowance of the expenditure is restricted only to the expenditure which is allowable under s. 37(1). We, therefore, confirm the disallowance made by the AO. In the result this ground of appeal is dismissed. 9. The next ground of appeal relates to the non-allowance of additional depreciation on computer and paper-copier amounting to Rs. 99,689. According to the assessee the AO without discussing or recording a finding as to whether co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat computer was not office appliance. We also find that there is no finding by the AO in the assessment order as to whether the computer is an office appliance or not. The disallowance is merely based on presumption that these assets are office appliances. Following the decision of the Special Bench of the Tribunal in the case of Daks Office Services (P) Ltd. we hereby allow this ground of the assessee. The AO is directed to allow the assessee additional depreciation as claimed by the assessee. 11. The next ground of appeal relates to the interest chargeable under s. 216 of the Act. After hearing both the parties we are of the considered opinion that the AO should have passed a speaking order after giving a reasonable and fair opportunit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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