Case Number: ITA 5914/DEL/2019
Appellant: DCIT Circle 27(1), New Delhi
Respondent: Usha International Ltd., New Delhi
Assessment Year: 2016-17
Order Type: Final Tribunal Order
Date of Order: 2022-09-05
Pronounced On: 2022-09-05
Case Filed On: 2019-07-08
This appeal was filed by the Revenue against the order dated 05.04.2019 of the learned Commissioner of Income-Tax (Appeals)-9, New Delhi for the assessment year 2016-17. The appeal challenged the deletion of disallowances made by the Assessing Officer (AO).
The effective grounds raised by the Revenue were:
The assessee, Usha International Ltd., filed its return of income for the assessment year 2016-17. The Assessing Officer made several disallowances which were contested by the assessee before the CIT(A). The CIT(A) deleted the disallowances, which led to the Revenue filing this appeal.
The issues raised by the Revenue in this appeal were already decided in favor of the assessee by the Tribunal in ITA No. 7184/Del/2018 for the assessment year 2015-16 by order dated 25.10.2021.
The first ground relates to the deletion of the disallowance made under section 36(1)(va) of the Income Tax Act. The Tribunal noted that this issue was considered in the assessee’s favor in the previous assessment year (2015-16). The Tribunal upheld the CIT(A)’s decision to delete the disallowance, following the precedent set in the earlier case.
The Tribunal’s order for the assessment year 2015-16 stated:
“Once the payments have been made on or before the due date of the return of income, then we do not find any infirmity in the findings of the Ld. CIT(A). Accordingly, this ground of the revenue is dismissed.”
The second ground pertains to the disallowance of expenses related to club services and facilities. The Tribunal found that this issue was also decided in the assessee’s favor for the assessment year 2015-16. The Tribunal upheld the CIT(A)’s decision to delete the disallowance.
The Tribunal’s order for the assessment year 2015-16 stated:
“This issue is decided in favor of the assessee company by the order of the Tribunal in the appeal for the assessment year 2011-12. Accordingly, this ground raised by the revenue is dismissed.”
The third ground involves the disallowance of depreciation claimed at 25% on the opening WDV of intellectual property rights. The Tribunal noted that this issue was examined in detail in the assessment year 2012-13 and was decided in favor of the assessee. The CIT(A) had directed the deletion of the disallowance, and this decision was not appealed by the Revenue.
The Tribunal’s order for the assessment year 2015-16 stated:
“Once the depreciation has been allowed in the first year of capitalization of expenditure, thereafter there is no basis for disallowing the consequential benefit on WDV. Accordingly, this ground raised by the revenue is dismissed.”
The Tribunal, following its own decisions in the assessee’s cases for earlier assessment years, dismissed the appeal filed by the Revenue.
Order: The appeal of the Revenue is dismissed.
Pronounced on: 5th September 2022
Judicial Member: Challa Nagendra Prasad
Accountant Member: Dr. B.R.R. Kumar
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(A)
5. DR
Assistant Registrar, ITAT, New Delhi
DCIT Circle 27(1), New Delhi vs Usha International Ltd. – Disallowance of Expenses and Depreciation
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