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2010 (1) TMI 821 - AT - Income TaxLegal and professional charges disallowed on account of deprecation - details of legal and professional charges were not filed - depreciation disallowed by the lower authorities was claimed on the assets which were not sold by the assessee during the year under consideration. These assets were part of block of assets. Sales have taken place; therefore, this is not the case that the assessee has sold the entire plant and machinery and no asset remained with the assessee - Held that:- deduction on account of legal and professional charges and depreciation allowable. Deduction u/s 54EC - AO found that the bond had extended upto 31.12.2006; however, the assessee has purchased the bonds on 31.1.2007. Therefore, the assessee is not entitled for deduction as bonds were not purchased within the time allowed. - held that:- The assessee approached the appropriate authorities to buy the bonds; however, they were not available. Therefore, it was an impossible task for the assessee to comply with the conditions of sec. 54EC. The assessee ultimately purchased FDs of Rs. 50 lacs with a view to buy specified bonds whenever they are available. - As soon as the bonds were available in the market, the assessee immediately purchased the same. Therefore, in our considered view, under these circumstances, the assessee is entitled for exemption u/s 54EC. - Decided in favor of assessee.
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