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2013 (9) TMI 50 - AT - Income TaxAllowability of premium payable redemption of bond – Disallowance is made of Rs. 3,65,60,673/- - Held that :- Relying upon the Tribunal’s own decision in the earlier years in favor of assessee, it is held that proportionate premium payable is allowed as deduction – Decided in favor of Assessee. Depreciation - Disallowance of depreciation on assets acquired under scheme of arrangement to be allowed adopting IT WDV of the Transferor Company – Held that:- Ld.CIT(A) has correctly taken into account of the provisions of explanation 7 to section 43(1) on computation of depreciation allowance and the relevant definition of ‘amalgamation’ as provided in section 2 (1B) of the Act. Also, the findings of the Ld.CIT(A) on this ground is fortified by the decisions of the Hon’ble Supreme Court in the cases of Challappalli Sugars Ltd [1974 (10) TMI 3 - SUPREME Court].– Decided in favor of Assessee. Accrued interest as part of sale consideration for computing capital gains - During the year under consideration, the assessee had sold 1,50,000 (in numbers) NTPC Bonds and 1,50,000 (in numbers) IRFC Bonds. The AO added the interest accrued on such bonds of Rs.23,36,301/- to the sale price for computing capital gains – Held that:- Interest to be taxed, either on accrual basis or as part of sale consideration for computation capital gain. In the instant case accrued interest should be considered as part of sale consideration for computing capital gains since the accrued interest was not being taxed as interest – Decided against the Assessee. Taxability of interest received from the Income Tax Department of Rs.22,35,44,844/- for various assessment years – Held that:- Ground raised by the revenue is misconceived as the same is raised with the wrong perception as if the Ld.CIT(A) has directed the AO to exclude the interest where the said interest is taxable under the provisions of Income Tax Act - Hence dismissed this ground – Decided in favor of Assessee. Expenditure towards legal and professional fees allowability – Capital of revenue expenditure – Held that:- Perusal of the details of expenditure reveals that the assessee has not added any new assets - Said expenditure is not incurred for acquiring any enduring benefit or income-yielding asset - Expenditure is legally permissible as a deduction under section 37(1) of the Act being expenditure of revenue in nature – Depreciation is not allowed.
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