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2010 (5) TMI 543 - AT - Income TaxDepreciation - SAF Plant has been capitalized w.e.f. 1.4.1999 - The plant has not been in operation since capitalization - The entire plant and machinery is kept ready for use and was not used for business considerations, since the production of pig iron and silicon manganese is not economical, the assessee stopped the process of manufacturing the pig iron and it was selling the sponge iron directly to various industries in India - Held that: - since capitalization this SAF Plant, it was not in operation as such it cannot enter into block asset and the condition laid down in Sec.32 (1) not fulfilled and the assessee is not entitled for depreciation on this plant - This ground of the assessee is dismissed Disallowance – Provision for increased wages - Held that: - provisions made towards additional liability on account of enhanced wage and salary are allowable in the year of making such provision - Matter is sent back to the file of assessing officer for fresh consideration to allow ascertained liability on production of requisite evidence by the assessee for crystallization of this expenditure in the assessment year under consideration.
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