Income Tax Appellate Tribunal Delhi Triveni Engineering & Industries Ltd., ... vs Addl. Cit, New Delhi on 6 August, 2020 1 ITA Nos. 1955 to 1959/Del/2016 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BEFORE SHRI R. K. PANDA, ACCOUNTANT MEMBER AND MS SUCHITRA KAMBLE, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCING) ITA No. 1955/DEL/2016 ( A.Y 200102) Triveni Engineering & Industries Vs Addl. CIT(A) Ltd. Range16 8th Floor Express Trade Tower, New Delhi 1516, Sector16A Noida AABCT6370L (APPELLANT) (RESPONDENT) ITA No. 1956 to 1959/DEL/2016 ( A.Y 200203 to 200506) Triveni Engineering & Industries Vs ACIT Ltd. Circle16(1) 8th Floor Express Trade Tower, New Delhi 1516, Sector16A Noida AABCT6370L (APPELLANT) (RESPONDENT) Appellant by Sh. Rohit Jain, Adv, Ms. Tejasvi Jain, CA, Ms. Somya Jain, CA Respondent by Sh. Mritunjay Barnawal, Sr. DR Date of Hearing 01.07.2020 Date of Pronouncement 06.08.2020 ORDER PER SUCHITRA KAMBLE, JM These appeals are filed by the assessee against orders dated 27/01/2016 for A.Ys. 200102 to 200506 passed by the Commissioner of Income Tax (Appeals) 1, Noida. 2 ITA Nos. 1955 to 1959/Del/2016 3. The Grounds of appeal are as follows: ITA NO. 1955/Del/2016 (A.Y. 200102) "1. That on facts and circumstances of the case and in law, the CIT(A) erred in confirming the addition of Rs. 1,16,60,400/ being expenses incurred on Enterprise Resource Planning ("ERP") and software expenses, holding the same as capital expenditure. 2. That the CIT(A) erred on facts and in law in upholding the disallowance to the extent of Rs. 86,398/ under Section 14A of the Act." ITA NO. 1956/Del/2016 (A.Y. 200203) "1. That on facts and circumstances of the case and in law, the CIT(A) erred in confirming the addition of Rs. 1,94,03,906/ being expenses incurred on Enterprise Resource Planning ("ERP") and software expenses, holding the same as capital expenditure." ITA NO. 1957/Del/2016 (A.Y. 200304) "1. That on facts and circumstances of the case and in law, the CIT(A) erred in confirming the addition of Rs. 34,44,637/ being expenses incurred on Enterprise Resource Planning ("ERP") and software expenses, holding the same as capital expenditure." ITA NO. 1958/Del/2016 (A.Y. 200405) 1. That on the facts and circumstances of the case and in law, the CIT(A) erred in not directing the assessing officer to allow deduction of Rs.2,87,484, being expenses relatable to the relevant assessment year but debited in the Profit & Loss Account of the subsequent assessment year(s). 2. That on the facts and circumstances of the case and in law, the CIT(A) erred in not directing the assessing officer to allow depreciation of Rs.35,89,089, based on the revised depreciation chart filed during the course of assessment proceedings. 3 ITA Nos. 1955 to 1959/Del/2016 3. That on the facts and circumstances of the case and in law, the CIT(A) erred in not adjudicating the aforesaid grounds necessary to compute the correct taxable income of the appellant under the provisions of the Income Tax Act, 1961." ITA NO. 1959/Del/2016 (A.Y. 200506) 1. That on the facts and circumstances of the case and in law, the CIT(A) erred in not directing the Assessing Officer to allow further depreciation of Rs. 5,64,852/ based on revised depreciation chart filed during the course of assessment proceedings. 2. The CIT (A) erred on facts and in law in not adjudicating the aforesaid ground raised in the memorandum of appeal (refer Ground No. 2 in Form No. 35.)" 3. Firstly, we are taking up the facts of ITA No. 1955/Del/2016 filed by the assessee for Assessment Year 200102. The assessee company is in the business of manufacture and sale of Sugar, Turbines, Gear and Gear Boxes and project related activities in the field of settling up of Sugar plants, water treatment plants and mini hydel power projects. Apart from these activities, various sale of spares and servicing and engineering services are also being undertaken by the company. The business activ