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TMI Blog2018 (10) TMI 1751X X X X Extracts X X X X X X X X Extracts X X X X ..... ered by the special bench decision of this Tribunal in the case of Vireet Investments (P.) Ltd. (supra). Respectfully following the same, we delete the disallowance and allow this issue of assessee s appeal. Depreciation on computer accessories and printers at 60% - BSES YAMUNA POWERS LLD. / BSES RAJDHANI POWERS LTD. [ 2010 (8) TMI 58 - DELHI HIGH COURT] Interest receipt are business income because the assessee, for a very short period investing in FD s and Mutual Funds and earned interest income which is incidental X X X X Extracts X X X X X X X X Extracts X X X X ..... enses are as under: - Type of expenses Nature Yearly amount No. of empls at lower parel No. of empl. For 1 employee % to be taken Total amount Staff salary CTC Direct 667,853 40% 267,141 Authorised signatory 1% of CTC 5,601,354 1% 56,014 0.1% of ₹ 5173997 (CEO's Deputation Expenses) 6,522,000 0.10% 6,522 Office Boy salary 1% of CTC 111,192 1% 1,112 Rent Indirect 21,170,758 159 1 133,149 40% 53,260 Security Charges Indirect 426,062 159 1 2,680 40% 1072 House Keeping Indirect 409,482 159 1 2575 40% 1030 Canteen Exps Indirect 491752 159 1 3093 40% 1237 Electricity Charges Indirect 3375902 159 1 21232 40% 8493 Telephone Exps Indirect 902867 159 1 5678 40% 2271 398152 6. We have gone through the assessment order and noticed that the assessing officer have nowhere pointed out any defect in the suo moto disallowance computed by the assessee in regard to expenses relatable to exempt income. Simply the AO has applied Rule 8D(2)(iii) and by applying the said formula he has computed the disallowance. According to us, this issue is squarely covered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench of this Tribunal in the case of Vireet Investments (P.) Ltd. [2017] 58 ITR (AT) 313 (Delhi - Trib.) (SB) wherein the Tribunal has clearly held that no disallowance under section 14A of the Act r.w.r 8D of the Rules can be made while computing book profit under section 115JB of the Act. The learned Sr. DR could not controvert the above proposition. Accordingly, we are of the view that this issue is covered by the special bench decision of this Tribunal in the case of Vireet Investments (P.) Ltd. (supra). Respectfully following the same, we delete the disallowance and allow this issue of assessee's appeal. 11. The first issue in Revenue's appeal in ITA No. 8576/Mum/2011 for AY 2008-09 is against the order of CIT(A) allowing depreciation on computer accessories and printers at 60%. For this assessee has raised the following ground No. 1: - "1. On the facts and circumstances of the case and in law, the learned CIT(A) erred in allowing depreciation @ 60% on computer accessories & printers." 12. Brief facts are that during the year under consideration, the assessee purchase scanner machine, printers and claimed depreciation on printers and scanners at the rate of 60%. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO to assess interest income under the head business income. For this Revenue has raised the following ground No. 2: - "2. On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in directing the AO to assess interest income under the head "business income." 16. We have heard rival contentions and gone through the facts and circumstances of the case. We find that the CIT(A) has followed earlier years order of assessee's own case for AY 2007-08 and held that the interest receipt are business income because the assessee, for a very short period investing in FD's and Mutual Funds and earned interest income which is incidental. For this CIT(A) observed in para 8.1 as under: - "8.1 I have considered the facts of the case. This issue was also there in appellant's case in AY 2007/08 wherein it was held that such interest income was assessable under the head business income. The facts of the year under consideration are identical to that of AY 2007-08. During the course of business, the business receipts of the appellant were available for short period of time for deposing the same in fixed deposits and mutual funds. Thus the interest income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 56 (Born.), covers the controversy in favour of the assessee. In the case of Lok Holdings (supra), assessee was engaged in construction business and received monies from the purchasers of flats which it deposited with the bank before using it for its activity of construction. The income earned on money deposited with banks was held to be assessable as business income on the ground that the interest income sprang from the business activity of the assessee and not out of any independent activity. In our considered opinion, the ratio of the Judgment of Hon'ble Bombay High Court in the case of Lok Holdings (Supra) is clearly attracted in the instant case also. In the case before us, the assessee is in the business of ECS transaction processing activity in the course of which, it gains control over funds for a short period of time, which it deploys with the bank and earns interest. The business mechanics brought out by the assessee clearly establish that the interest income arises from the business activity of the assessee and not out of any independent activity and thus, the same is assessable as business income. 12. Apart therefrom, the judgment of Hon'ble Madras High Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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