Inspire BKC, 7th Floor, IncomeTax14(1)(1) Bandra Kurla Complex, Room no 432, Aaykar Bhawan, Bandra (E) M.K. Marg, Mumbai400051. Mumbai400020. PAN/GIR No. AAACH2914F (अपीलाथ /Appellant) ( यथ /Respondent) ITA No. 2188/MUM/2012 (A.Y.200304) Deputy Commissioner Vs. Novartis India Limited of IncomeTax14(1)(1) Inspire BKC, 7th Floor, Room no 432, Bandra Kurla Complex, Aaykar Bhawan, M.K. Marg, Bandra (E) Mumbai400020 Mumbai400051 PAN/GIR No. AAACH2914F (अपीलाथ /Appellant ( यथ /Respondent) Assessee by Shri J.D. Mistry & Shri BrijeshParmar,AR Revenue by Shri Himanshu Sharma.Sr.DR सन ु वाई क तार ख/Date of Hearing 22.04.2024 घोषणा क तार ख/Date of Pronouncement 27.05.2024 2 ITA. No. 2308&2188/Mum/2012 &C.O.76/Mum/2013(A.Y.: 200304) Novartis India Limited, Mumbai ORDER PER The Cross Appeal is filed by the assessee and the revenue against the order of the Commissioner of Income Tax (Appeals) (CIT(A)) 15, Mumbai passed u/sec143(3) and U/sec250 of the Act, and the Cross Objection (C.O) is filed by the assessee in the revenue appeal. 2. Since the issues involved in these appeals and CO are common and identical, hence are clubbed, heard and a consolidated order is passed. For the sake of convenience, we shall take up the assessee appeal ITA No.2308/Mum/2012 for A.Y 200304 as a lead case and facts narrated. The assessee has raised the following grounds of appeal: Each of the grounds of appeal and the subgrounds there under are without prejudice to, and independent of one another. GROUND NO. 1 (a) The Commissioner of Income Tax (Appeals) 15 (hereinafter referred to as the "CIT(A)") erred in holding that the appellant would not be eligible for depreciation on assets that stood vested in Ciba Specialty Chemicals (India) Ltd., (CSCIL) pursuant to the scheme of demerger. (b) The CIT(A) erred in holding that a consideration had flowed to the appellant for the transfer of the assets to CSCIL GROUND NO. 2 The CIT(A) erred upholding the action of the Assessing Officer (hereinafter referred to as the "AO") of disallowing the expenditure on computer software/licence fees of Rs. 3 ITA. No. 2308&2188/Mum/2012 &C.O.76/Mum/2013(A.Y.: 200304) Novartis India Limited, Mumbai 1,22,12,738 in nature of application software on the ground that the same is capital expenditure of enduring nature. GROUND NO. 3 (a) The CIT(A) erred in upholding the action of the AO in disallowing advances written off pre predominantly MODVAT credit claims receivable from parties towards purchase of finished goods amounting to Rs. 16,68,997 charged to the profit and loss account. (b) Without prejudice, the CIT(A) ought to have allowed the above under section 37(1) as business expenses. GROUND NO. 4 (a) The CIT(A) erred in confirming the action of the AO in excluding 90 per cent of receipts from Interest on employee loans, Interest on overdue debtors, Sales tax set off claims, Insurance claims realized, Scrap sales income, cash discount, exchange gains, other miscellaneous write back of liabilities, discounts, etc, cost of services recovered, Profit under Section 41(3) on sale of R & D assets while working out the 'profits of the business' (b) Without prejudice, it is submitted that 90% of net amount, as applicable of the aforesaid receipts should be excluded while computing "profits of business" for the purpose of deduction under section 80HHC. GROUND NO. 5 (a) The CIT(A) erred in confirming the action of the AO in computing the income from house property at a notional value. (b) The CIT(A) further e