Case Law Details
DCIT Vs Tata AIG General Insurance Co. Ltd. (ITAT Mumbai)
The facts clearly shows that the assessee has incurred an expenditure of ₹29,46,886/- on non EDP and EDP equipments under IT expenses. This expenditure is related to purchase of Pen drives, laptop adapters, batteries and hard disk, etc. The learned Assessing Officer made the disallowance based on his order for Assessment Year 2014-15 holding that these are capital expenditure. He granted the depreciation on this items at the rate of 60% and disallowed the balance sum of ₹11,75,755/-. This disallowance was challenged before the learned CIT (A) vide ground no.17. The learned CIT (A) held that as in assessee’s own case, the co-ordinate Bench for Assessment Years 2006-07 to 2008-09 has deleted the identical disallowance holding that these are revenue expenditure. Thus, he deleted the disallowance of the above expenditure.
On hearing both the parties, we find that identical issue arose in case of the assessee for Assessment Year 2006-07 to 2008-09. The co-ordinate Bench vide Para nos. 22,23, relaying on the decision of Hon’ble Madras High Court in case of Southern Roadways Ltd. 288 ITR 15 (Mad) held that purchase of hard disk, battery, etc. is revenue expenditure and not capital. Further identical issue in case of the assessee honourable Bombay High Court in [2020] 116 taxmann.com 492 (Bombay) [05-08-2019] as already decided this issue in favour of the assessee. Therefore, this issue is squarely covered in favour of the assessee. Hence, we confirm the order of the learned CIT (A) in deleting the above disallowance. In the result, ground No. 3 of the appeal is dismissed.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
01. This appeal [ITA No. 14/Mum/2021] is preferred by the Dy. Commissioner of Income Tax on 08.03.2001, Mumbai (the learned Assessing Officer/AO) for the Assessment Year 2015-16 against the order passed by the Commissioner of Income-Tax (Appeals)-15 [The Learned CIT(A)], Mumbai dated 28.02.2020.
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