9911796707
TMI Blog2023 (4) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... ent year 2004-05, 2005-06, 2006-07 & 2007-08 respectively passed by the CIT(A)-X, New Delhi, CIT(A)- 4, New Delhi respectively (hereinafter referred as Ld. First Appellate Authority or in short Ld. 'FAA') arising out of an appeal before it against the order dated 17/12/2008, 24/11/2009 & 27/12/2010 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as 'the Act') by the DCIT, Circle-12(1), New Delhi (hereinafter referred as the Ld. AO). The Revenue is in appeal against order dated 27/03/2015 & 26/03/2015 for A.Y. 2006-07 to 2007-08 of Ld. CIT(A)-4, New Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. 'FAA') arising out of an appeal before it against the order dated 24.11.2009 & 27.12.2010 passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ges. The CIT has given relief to the assessee on the ground that assessee had produced party wise details before the Ld. CIT(A) which was missing in assessment year 2004-05 and also for the fact that in assessment year 2010-11 the assessing officer has not preferred to make the disallowance on payment of processing charges. 4. At the time of argument, Ld. AR submitted that the grounds are primarily raised and adjudicated in the previous years either at the level of Tribunal or CIT(A) and detailed written submission of the same is provided.Ld. DR also admitted that the issues have been considered in the previous years and adjudicated at the two appellate levels. 5. Now taking up these issues individually for determination. 5.1 Issue no. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it comes up that assessee had appointed M/s. S.R.Mineral Water Pvt. Ltd. as its distributor in Chennai which was earlier distributor of competing product from which it had built a large customer base in Chennai. Assessee had forgone a substantial amount due from S. R Mineral, which was by way of deposits collected on behalf of assessee. This amount as forgone by the assessee was considered as consideration for acquisition of rights to access to the customer data base available with the said distributor. Assessee considered it as a capital expenditure towards acquisition of intangible asset being customer data bank and claimed depreciation. 6.1 Ld. AO allowed the same in the assessment year 2003-04 being first year and in the subsequent yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of assessee with M/s. S.R. Minerals Water. However, the fact of allowance of the expenditure in 2003-04 is not disputed by the Revenue. Thus, the settled proposition of law that if in the initial year of claim the depreciation, is allowed, the claim cannot be disturbed in the subsequent years, has not been followed by the Ld. Tax Authorities below on the basis of lack of agreement between the assesseeand M/s. S.R. Minerals Water,to examine the nature of receipt, cannot be sustained and the grounds arising out of this issue in the respective assessment years are allowed in favour of the assessee. 7. Issue no. 3; In regard to adhoc disallowance to the extent of 10% of the processing charges it comes up that in relation to packing and pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing genuineness of the payments made to the suppliers. The non-availability of the suppliers or their failure to appear on the behest of assessee is not required to be considered to discredit the expenditure otherwise established from books and mode of payment. Accordingly, the ground arising out of this issue in appeal of assesee for the assessment year 2004-05 and 2005-06 are allowed for statistical purposes. While of Revenue for A.Y. 2006-07 and 2007-08, against the Revnue. 8. Issue no. 4; In regard to disallowance of CSR expenses for assessment year 2004-05 it can be appreciated that expenditure was incurred on activities like installation of handpumps, distribution of shoes, uniform etc. to school students, drought relief measures e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -Boxes as part of plant and machinery and allowed depreciation in assessee's own case for A.Y. 2002-03. The Tribunal has disallowed expenses hold the same to be capital in nature. 9.1 On behalf of the assessee it is submitted that there is no enduring benefit to the assessee and the purpose of expenditure is to increase the sales at the outlets / vendors therefore, the expenditures were incurred for the purpose of business promotion and advertisement. It is submitted the Ice-boxes do not have as life and scrapped soon. 9.2 The issue is dealt by Co-ordinate Bench, in the case of assessee for A.Y. 2002-03 by co-ordinate Bench with following relevant findings :- "21. We are of the considered opinion that the touchstone applied by Hon'ble D ..... X X X X Extracts X X X X X X X X Extracts X X X X
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