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2014 (7) TMI 125 - ITAT DELHICapital recovery on leased assets – Held that:- As it has already been decided in earlier assessment year, even after deduction of finance income, the full value of the cost of assets is fully recovered in lease period of 30 years and it is a case of Finance Lease as per the guidelines issued by ICAI - the AO should verify the charts and if the condition is satisfied, all the transactions should also be accepted as finance lease transactions – thus, the matter is remitted back to the AO –Decided in favour of Revenue. Bond issue expenses – Held that:- The expenditure would qualify only for amortization u/s 35D of the Act - the expenditure was a permissible deduction and accordingly deleted the addition made by the AO – thus, bond issue expenses will be allowable as deduction as revenue expenditure – Decided against Revenue. Prior paid expenses – Held that:- If the AO is of the view that the expenses are pertaining to the prior period, it is required to be considered for the prior and allowed in that year - If it is found that the expenses are allowable in this year on the basis of crystallization of liability, it may be considered in the year – the assessee is directed to place necessary evidence in support of claim of expenses – the AO is directed to determine the allowability of the expenses - the matter is remitted back to the AO.
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