CIT(A) order was upheld in allowing depreciation and expenses on retention money and amount spent on club and entrance fees

DCIT Vs MRF Ltd (ITAT Chennai) Conclusion: Since assessee was maintaining mercantile system of accounting, upon the basis of which the profits or gains were computed and it had been regularly following it, assessee’s claim were in accordance with law and hence CIT(A) had rightly directed to allow depreciation on the retention money on capital account and also allow the retention money with held on revenue account. Considering the nature and volume of business performance of the assessee, the amount spent towards Club and entrance fees was reasonable. Therefore no disallowance was required. H...