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2009 (10) TMI 612 - AT - Income TaxDepreciation - unused plant - Since the plant could not be used due to non-availability of raw material in this year, depreciation has been denied mainly on the basis that the plant and machinery were not put to use in this relevant year - Held that: - Once the assets are part of block of assets, it looses its individual cost or WDV. In a way it looses its identity. Thereafter, the depreciation is allowable on the entire block of assets. - since the gas sweetening plant was kept ready for use, but could not be actually used due to lack of raw material, was eligible for depreciation as claimed by the assessee. - Decided in favor of the assessee Deduction u/s 80HHC - computation - Held that: - (i) the receipts from such sale of power cannot be included in the business profits. (ii) sale of scrap cannot be included in the business profits. (iii) matter restored to the file of AO to examine the issue in respect of Unclaimed/unspent liabilities since by mere book entry no profit is generated. (iv)Crane hire charges: This expenditure has got nothing to do with the export activities. (v) Recoveries from house rent: cannot be excluded from business profits. (vi) Recoveries from employees furniture, Liquidated damages and other recoveries, Participation fees for training programme, Reimbursement from PII and others for deputation of employees: - matter restored to the file of AO. Interest received from Customers - Business income or income from other sources - Held that: - Interest from customers has to be assessed only as business income
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