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TMI Blog2011 (4) TMI 1336X X X X Extracts X X X X X X X X Extracts X X X X ..... s for the A.Y. 2004-05. Further, he mentioned that major grounds of these appeals are covered of the Revenue, as the case may be. Further, assessee's counsel filed a chart giving the particulars of concise grounds, amounts of addition, references to the orders of the Revenue and the way the issues are covered either side. In the last column of chart, assessee referred to certain decisions which would have impact on the claim of assessee. For the sake of completeness, the said chart is scanned and pasted in the succeeding paragraphs. Taking cue from the above chart, we proceed to adjudicate the grounds raised in all these three appeals as per the discussion in the succeeding paragraphs. ITA No. 965/PN/2009 - Asstt. Year 2003-04 - Assessee' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ttal time, the Counsel prayed for assigning this issue to the files of the A.O for examining the issue afresh in the light of above referred apex Court judgment as well as Gujarat High Court. On observation of the above, we find the issue of leasehold right is covered in favour of the Revenue by virtue of the decision of this tribunal in the assessee's own case and the same, therefore, is in the capital nature and this is not in dispute before us. The only dispute for adjudication before us relates to whether the assessee is entitled for depreciation on such lease right and if they are in the nature of eligible rights specified in 32(1)(ii) ie business or commercial rights of similar nature, as observed by the Apex Court in the case of Tech ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mar 1998 Accounted the purchase transaction in the books of account 3. 01 April 1998 The Appellant paid stamp duty on account of entering into the aforesaid agreement 4. 01 April 1998 Depreciation on assets acquired from Greaves Limited was claimed from A.Y. 1999-00 onward only. 5. 08 April 1998 First sale Invoice was raised by Appellant from Baramati unit. 6. 25 June 1998 Transfer of dealership network by actual communication to the dealers by Greaves Ltd. 7. Diff dates after1 Apr 98 Payment to Greaves Ltd for purchase of Baramati unit. 8. 4 August 1998 Sale Deed for Purchase of Baramati Unit between Greaves Ltd. and Appellant. Assessee relied on various judgments to advance his case. The Revenue did not appreciate th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... favour of the assessee. As per the said Tribunal order, actuarial valuation of warranty provision based on the past experience constitutes reasonable basis for estimation of the provision of warranty as held by the Apex Court in the case of Bharat Earth Movers (supra) in regard to the provisions, though relating to the issue of leave encashment in that case, are as follows. "The law is settled. If the business liability has definitely arisen during the accounting year, the deduction should be allowed although the liability may have to be quantified and discharged at a later date. What should be certain is the incurring of the liability. It should also be capable of being estimated with reasonable certainty although the actual quantificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the head 'income from other sources'. Once the interest receipts are outside the scope of the head of income ie 'profits and gains from the business or profession' , the law does not permit grant of deduction in respect of such income taxable under the head income from other sources. Therefore, we are of the considered opinion that the said interest is not entitled for deduction u/s 880HHC of the act. Thus, the assessee loses the appeal on this part of the ground. Accordingly Ground D is dismissed. 6. In the result, appeal of the assessee is partly allowed. ITA No. 966/PN/2009, Asstt. Year 2003-04 (Assessee's appeal) 7. As seen from Grounds A to D of this appeal, the issues are identical to the ones discussed in the Appeal ITA No. 965/P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d before us by the Revenue relates to granting of additional depreciation on the computers used in the manufacturing process. In this regard, Ld. Counsel relied on the Jharkhand High Court judgment in the case of TRF Ltd. v/s. CIT [2008], 298 ITR 78 and mentioned that the computers are eligible for additional depreciation u/s. 32(1)(iia). On the other hand, Ld. D.R. relied on the orders of the Revenue and we perused the facts of the case and the cited judgment in the case of TRF Ltd. (Supra). The held portion of the said judgment reads as follows : "Held that investment allowance was admissible in respect of the industrial undertaking for the purpose of business of construction, manufacture or production of any article or thing. It was th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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