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2011 (10) TMI 46 - AT - Income TaxTemporary erection had been done in the office premises taken on lease - Depreciation on leasehold building - CIT(A) directed the AO to allow 100% depreciation - Transfer of shares - Applicability of section 79 - Held that:- In the present case, as observed by the ld. CIT (A), the assessee made its claim u/s 37 during the assessment proceedings, though it had claimed depreciation to start with. The ld. CIT (A) held that the AO was wrong in rejecting the claim of the assessee. In this regard, 'M/s. Hi Line Pens Pvt. Ltd.'(2008 -TMI - 30864 - HIGH COURT DELHI), has rightly been pressed into service. Therein, it has been held, besides the above, that the repairs all kind carried out therein like in the present case, were expenses incurred for repairs for making the premises more conducive to the assessee’ s business activities and its expenses did not bring about any new capital asset. - Decided in favor of assessee. Transfer of shares - Applicability of section 79 - Held that:- once, the requirements of the provisions were FEMA the facts are to be stringently followed and it has been so done, it was the requirement of the Foreign Direct Investment Laws which made the assessee to act in the manner discussed above. The provisions of section 79 of the I.T. Act, therefore, cannot be said to envisage the transfer of shares by the subscribers of the Memorandum of Articles of Association as a change in the shareholding of the assessee company. - for the purpose of Explanation II, both legal ownership and beneficial ownership should be taken into account. - Decided in favor of assessee.
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