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2012 (9) TMI 296 - HC - Income TaxDisallowance u/s 14A - ITAT deleted it - Held that:- Considering law having been declared in Maxopp Investment Ltd. & Others Versus Commissioner of Income Tax [2011 (11) TMI 267 - DELHI HIGH COURT] that to ascertain the correctness of the claim of the assessee in respect of the expenditure incurred in relation to income which does not form part of the total income the assessing officer will have to verify the correcteness of such claim - AS Rule 8D r.w.s. 14A is applicable only from assessment year 2008-09 and, in respect of prior years, expenses relating to exempt income both direct and indirect have to be computed on a reasonable basis after allowing opportunity of hearing to the assessee - case is remitted back for reconsideration - in favour of assessee by way of remand. Depreciation on Aeroplane-Aeroengines - whether the "Beechcraft Super King Air B-200C" purchased by the assessee fell within the description of aeroplane ? - Held that:- With regard to the history of the entry all that can be inferred is that “aircraft” is a broader description which includes all manner of craft or means of transport aided by flight, (such as balloons, planes etc.) within the Depreciation Rule. For the reasons best known, the rule making authority confined and narrowed definition to “aeroplane”. This conclusion is also supported by the fact that other entries in Rule III(3) of the depreciation table extend to entire vehicles such as commercially pliable buses, cars etc. They do not confine the scope of depreciation only to parts of such vehicles - as aircraft owned by the assessee has fixed wings and has the characteristics of the aeroplane though it may be of a smaller capacity which is able to fly only nine passengers on board the aircraft owned by the assessee cannot be thrown out of the category of "aeroplane" and to be considered only as "Plant and Manchinery" which is a term distinct to such type of aircraft - Thus in view of the above discussion the Tribunal‟s judgment does not disclose any error as regards interpretation of Entry III(3)(i) of the Depreciation Rules and its upholding the depreciation allowable in the present case to the tune of 40% cannot be termed as unjustified or unwarranted - in favour of assessee. Claim of cash payment as deductible expenditure under Rule 6DD(k) - Held that:- As the charges payable and claimed by the assessee were in respect of the route navigational and parking charges for an aircraft required by Airport Authority of India there can be no dispute that the Airport Authority of India is a statutory body entitled to claim its dues and even entitled to frame Rules and Regulations under the parent Act in such an eventuality, once the authority required that cash had to be paid as a condition for flight clearance required by the assessee, it had really no choice in the matter. The interpretation urged by the revenue is far removed from reality - in favour of assessee.
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