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2014 (7) TMI 1263 - AT - Income TaxDisallowance of depreciation claimed on Wind Mill on the reasons that it has been incurred for development of the infrastructure of the land - Held that:- From the nature of various payments, it is clear that separate amounts towards earth work and the foundation; erection and commissioning have already been paid to Suzion Infrastructure Ltd. Hence, in our opinion, the payments made to TNEB are not towards development of land infrastructure, foundations, erection and installing and commissioning etc., which in the sense of terminology of development of windmill are actually infrastructure charges. we are of the opinion that these charges paid to TNEB are for evacuation of land, towards fee of NOC of land and its registration and supervision charges to make unhindered land available and ensure technical specifications. Accordingly, the same cannot form part of the plant and machinery of windmill to be eligible for depreciation. In view of the above facts and circumstances of the case, we are of the considered opinion that the lower authorities are right in treating the payment towards permission for land utilization, NOC and registration of land and has rightly capitalized them with the cost of land and denied deprecation on this payment - Decided against assessee Addition towards interest on investment expenditure incurred in new the line of business - Held that:- In order to allow as the amount of interest paid in respect of capital borrowed for the purpose of business must be of an existing business. In this case, as the business was not set up at the time of incurring the interest; therefore, no question of allowance of interest is allowable u/s 36(1)(iii). Whether this was a part of new business or not was a fact, which was for the assessee to establish and the assessee was failed to establish the fact even before us. Being so, it is not possible to uphold the contention of the assessee. In the premises, the lower authorities were right in disallowing the proportionate interest expenditure relating to the investment made in the new line of business - Decided against assessee
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