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2015 (7) TMI 371 - PUNJAB & HARYANA HIGH COURTDisallowance made under Section 36(1)(iii) - Disallowance of higher depreciation on installation of electrical line for power transmission and metering treated as not part of Wind Mill - Power evacuation infrastructure as part of wind mill - Depreciation on contribution for power evacuation facility - Held that:- Disallowance made under Section 36(1)(iii) - It was not the case of the AO that the assessee had diverted the funds borrowed on interest for the purpose of advancing the sum to his son for business. The Tribunal noted that the AO had in fact accepted that no such borrowed funds had been diverted/advanced by the assessee to his son. There was no nexus between the funds borrowed by the assessee and the funds diverted/advanced to his son. There were free reserves available with the assessee to advance the interest free loan to his son. All other grounds are admittedly covered by a judgement of the Division Bench of this Court dated 18.12.2014 titled as Commissioner of Income Tax-I, Ludhiana Vs M/s Eastman Impex [2015 (1) TMI 436 - PUNJAB & HARYANA HIGH COURT]. The questions are answered against the appellant/department. - Decided against the revenue.
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