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2007 (11) TMI 455 - AT - Income TaxAddition made in the income by the Depreciation amount on wind farm plant - Disallowance of expenses on foreign travel - vehicle expenses. Depreciation on wind farm plant - Absence of details regarding installation and commercial operation of the wind mill generators - HELD THAT:- We find that the WTGS was commissioned and trial run was also undertaken which is evident from the certificate of Gujarat Energy Development Agency for the share of power certifying that 11.9 KW were supplied to the Gujarat Electricity Board in the month of March, 1995. Sales-tax exemption certificate with effective date as 27-3-1995, the eligibility certificate issued by the Commr., commissioning certificate by GEDA, quick test report issued by the GEDA letter of NEPC-MICON for successful commissioning and all certifying that the WTGS was commissioned on 27-3-1995. Thus, there remains no doubt that the WTGS was commissioned only on 27-3-1995 and, therefore, the assessee is entitled to depreciation in respect thereof in accordance with law. The AO is directed to allow the claim of the assessee. Disallowance of expenses on foreign travel - HELD THAT:- In our opinion, if the expenditure is incurred for exploring the possibility of exports and attending exhibition in France, the expenditure would be for the purpose of assessee’s business and the entire expenditure is to be allowed irrespective of whether the assessee was able to get export orders or make any export in this year or in the subsequent year. Therefore, the CIT(A) was not justified in restricting 50 per cent of the expenditure incurred for travelling. We direct travelling expenses incurred by the assessee in full. Disallowance of vehicle expenses - HELD THAT:- We find that the issue stands covered by the decision of the Gujarat High Court in the case of Sayaji Iron & Engg. Co.[2001 (7) TMI 70 - GUJARAT HIGH COURT], referred to by the CIT(A) and, therefore, the CIT(A) was right in allowing the claim of the assessee. In the result, assessee’s appeal stands partly allowed and Revenue’s appeal stands dismissed.
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