Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (5) TMI 493 - AT - Income TaxAddition of interest income - CIT(A) deleted the addition - Held that:- There is no dispute that the assessee has already commenced its business and it is also not disputed that the assessee had earned interest from bank deposits temporarily made out of borrowed funds which has not been utilized in the business. CIT(A) has also allowed this issue following his own order for immediately preceding year i.e. for assessment year 2007-08, which has been confirmed by the Tribunal considering the decision of CIT Vs. Jhunjhunwala Vanaspati Limited [2008 (4) TMI 270 - HIGH COURT ALLAHABAD] and CIT Vs. Varun Shipping Co. Ltd., [2008 (9) TMI 591 - Bombay High Court]. In favour of assessee. Depreciation on road - Held that:- This issue is also decided by the Tribunal for assessment year 2007-08 allowing the appeal as relying on case of CIT Vs. M/s Noida Toll Bridge Co. Ltd. [2012 (11) TMI 556 - ALLAHABAD HIGH COURT] & Maharashtra State Road Development Corporation Limited [2008 (4) TMI 704 - ITAT MUMBAI] to held that depreciation is allowable on roads. The Tribunal has held that roads, flyovers, bridges etc. constructed and owned by the assessee and utilized in its business of providing infrastructure were tools of its trade and essential adjuncts to its business and not merely a setting in which business was carried on and, therefore, would constitute plant and would be entitled to depreciation. In favour of assessee. Disallowance of the debenture issue expenses - Held that:- Assessee has not claimed any interest but has claimed on account of various other expenditure on debenture issues. As the debentures issues are loan, and, therefore, whether it is convertible or non- convertible, does not militate against the nature of the debenture, being loan, and, therefore, the expenditure incurred would be admissible as revenue expenditure - allow this issue in favour of the assessee.
|