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2014 (9) TMI 998 - AT - Income TaxRoyalty payments - revenue or capital expenditure - entitlement for additional depreciation - Held that:- ITAT in the assessee’s own case in A.Ys. 1999-2000,2003-04, 2004-05 and 2005-06 has held that 75% of the royalty payment is revenue expenditure and balance 25% was held to be capital expenditure and entitled for depreciation. Since the facts are exactly the same (continuation from the earlier years), the decision of the ITAT is equally applicable for the current A.Y. 2008-09 under consideration. Therefore, the Assessing Officer is directed to treat 3/4th as revenue expenditure and the balance of 1/4th of payments as capital expenditure, in accordance with the directions of the ITAT in the earlier years. Additional depreciation claim - when the assessee has used plant and machinery less than 180 days whether it will be eligible to carry forward the remaining balance of additional depreciation to next year or not - Held that:- In the present case the assessee used new plant and machinery below 180 days and therefore, additional depreciation shall be allowed only 50%. See M.M. Forgings Ltd. v. Addl. CIT [2011 (1) TMI 203 - MADRAS HIGH COURT ] - Decided partly in favour of assessee
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