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TMI Blog2012 (7) TMI 798X X X X Extracts X X X X X X X X Extracts X X X X ..... following questions of law for consideration by this Court. i) Whether on the facts and circumstances of the case and in the law the Tribunal was justified in deleting the disallowance of Rs.20,400/- on account of corporate membership fees paid by the assessee, holding the same to be revenue in nature when the same was held to be capital in nature when the same was held to be capital in nature both by the A.O. & CIT(A)? ii) Whether on the facts and circumstances of the case and in law, the ITAT was justified in deleting disallowance of Rs.10,07,803/- being expenses incurred by the assessee on account of taxes and fees not pertaining to year under consideration? iii) Whether on the facts and circumstances of the case and in law the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iation when these assets are within the purview of furniture and fixture and not as "Plant and machinery"? 2) The appeal is admitted with regard to question (ii) above. Regarding Question (i) : 3) The Corporate Membership fee paid by the respondent towards the yearly renewal of membership fee of clubs has been allowed as revenue expenditure. The club membership enable the nominated executives to meet people and develop relationship for smooth conduct of day to day business. The Tribunal followed its order for the Assessment year 1998-99 in respondent's own case where both entrance and renewal fees paid for club membership were allowed as revenue expenditure. The earlier order of the Tribunal has not been challenged by the revenue. Theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis of unencashed coupons. The obligation to render free service is required to be recognized as expenditure when the vehicle is sold. However, provision has to be made bearing in mind the fact that the unencashed coupons have a validity for a period of time. The above practice of making provision for utilized coupons is being followed by the respondent for the past several years. The Assessing officer was of the view that the provision as made of Rs.1.11 crores was in excess by Rs.17.54 lacs as during the next year only a sum of Rs.93.66 lacs had been paid by the respondent to its dealers. Consequently, the provision for Rs.17.54 lacs was disallowed by the Assessing Officer. The CIT (Appeals) and the Tribunal found that quantification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer took a view that telephone trolleys, furniture etc. in the factory are in the nature of furniture and not in the nature of plant and machinery. Therefore, depreciation though allowable will be at the rate available to furniture and not to plant and machinery. The Tribunal in its order held that the issue is settled by the Tribunal in the earlier year in respect of the same assessee by an order dated 8th August, 2005. The Advocate for the revenue has not been able to point out any change in the circumstances which would warrant taking a view different from the view taken by the Tribunal for the Assessment Year 1996-97 as well as the CIT (Appeals) for the period 1992-93 to 1999-2000. In view of the above, Question No.(vii) does not ra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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