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TMI Blog2021 (3) TMI 1435X X X X Extracts X X X X X X X X Extracts X X X X ..... ome. We find that the directions of the ld. CIT(A) are in consonance with the provisions of the law. We, therefore, do not find any reason to interfere with the same. Disallowances of expenses - HELD THAT:- As CIT(A) noticed that similar issues were considered by the Tribunal in assessee s own case in A.Ys 2006-07 to 2008-09 and following the findings of the Tribunal, the ld. CIT(A) deleted the same.DR could not bring any distinguishing decision in favour of the Revenue. We find that the Tribunal [ 2017 (7) TMI 172 - ITAT DELHI] for A.Ys 2006-607 to 2008-09 has deleted the disallowance. Depreciation on software licences @ 25% OR 60% - CIT(A) deleted the disallowance - HELD THAT:- CIT(A) found that similar issue was decided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred in deleting disallowance made on account of depreciation on software licences by categorizing between software as integral and utility on arbitrary assumptions. 3. Briefly stated, the facts of the case are that the assessee is engaged in the business of conducting its business of rendering various activities and sale of web space for advertisement through its web portals in the name of Indiatimes.com. The assessee is also providing e-commerce i.e. sale of goods through web portal. The assessee company is a wholly owned subsidiary of M/s Bennett Coleman Co. Ltd, Times of India Group [BCCL]. 4. The original return of income was e-filed on 17.09.2012 declaring total loss of Rs 40.33 crores, which was revised on 22.04.2013. Revise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... behalf of BCCL from A.Ys 2001-02 to 2005-06. According to the Assessing Officer, under the head Income from business and profession claim of only those expenses can be allowed which have been incurred wholly and exclusively for the purposes of business. The Assessing Officer was of the firm belief that the alleged expenses were partly incurred for the business of BCCL and accordingly, disallowed 62.8% of the receipt and made addition of Rs. 1,89,45,379/-. 10. Proceeding further, the Assessing Officer noticed that the assessee has claimed depreciation @ 60% on software. The Assessing Officer was of the firm belief that the eligible rate of depreciation was 25% and, accordingly, restricted the claim of depreciation on software @ 25% and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elded exempt income. We find that the directions of the ld. CIT(A) are in consonance with the provisions of the law. We, therefore, do not find any reason to interfere with the same. 17. In so far as the disallowance of Rs. 1,89,45,379/- is concerned, the ld. CIT(A) noticed that similar issues were considered by the Tribunal in assessee s own case in A.Ys 2006-07 to 2008-09 and following the findings of the Tribunal, the ld. CIT(A) deleted the same. 18. The ld. DR could not bring any distinguishing decision in favour of the Revenue. 19. We find that the Tribunal, in ITA No. 2986, 4130 4132/DEL/2011, vide a consolidated order for A.Ys 2006-607 to 2008-09 has deleted the disallowance. The relevant findings of the Tribunal read as u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee submitted that this business hitherto entrusted to the assessee by its holding company was withdrawan w.e.f 1.10.2004. Necessary communications withdrawing the above business from the assessee were also furnished to the AO. In this backdrop of the facts, the AO noticed that albeit such businesses were not carried on by the assessee during the year, the overall expenses of the assessee were still on northwards sojourn. This was held on the strength of the percentage of the expenses to revenue at 62.85 for the AY 2004-05 when the assessee was having these business: during the assessment year 2005-06 when these businesses remained with the assessee for a part of the year, the percentage of expenses went up to 73.5%; and during the yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be on higher side, it was incumbent upon him to specifically point out as to which expenses were not incurred for the purposes of business. No such exercises worth the name has been carried out. In our considered opinion, the Ld. CIT(A) was fully justified in deleting this addition made by the AO on ad hoc basis. This ground is therefore, not allowed. 20. Respectfully following the findings of the co-ordinate bench, we decline to interfere. 21. The next grievance of the Revenue relates to deletion of disallowance of Rs. 32,12,253/-. 22. The Assessing Officer has taken a view that the expenditure towards software is eligible for depreciation @ 25% instead of 60%. 23. The ld. CIT(A) found that similar issue was decided by his ..... X X X X Extracts X X X X X X X X Extracts X X X X
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