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2014 (8) TMI 838 - AT - Income TaxDepreciation of wagons – Assets leased to Western Railways - Held that:- Lease deed that the equipments leased will be returned back to the lessor after the expiry of the lease - Following the decision in Gujarat Narmada Valley Fertilizers Co. Ltd. Versus The ACIT Bharuch Range, Bharuch [2013 (8) TMI 628 - ITAT AHMEDABAD] - Nothing has been brought to disapprove the said clauses of the lease deed by any of the authorities below - It is not proved that assessee is only a financer and is not interested in the assets and therefore, it cannot be said as full payout lease - the Assessee is eligible for claim of depreciation – Decided in favour of assessee. Admission of additional ground - Depreciation on goodwill u/s 32(1)(iii) – Held that:- The ground of depreciation on goodwill was not raised before AO or CIT(A) but is raised before Tribunal for the first time - the matter needs to be decided at the end of CIT(A) –thus, the matter is remitted back to the CIT(A) – Decided in favour of Assessee. Interest u/s 36(1)(iii) disallowed - Borrowings utilized for non-business purpose or not – Held that:- As decided in assessee’s own case for the earlier assessment year, it has been held that Revenue could not controvert by bringing any contrary material on record – CIT(A) rightly was of the view that the manufacturing units of the assesses company are situated at a distance from nearest urban area and therefore adequate educational facilities are not available - The interest free advance given to the trust i.e. NE&SRS is to support the college - the financial support to the trust and 'thereby to college is motivated out of the commercial expediency - there was no reason to interfere with the order of CIT(A) – Decided against Revenue. Expenses on maintenance on assets of Gujarat Narmda Auto Ltd. – Held that:- As decided in assessee’s own case for the earlier assessment year, it has been held that the AO made a disallowance being the expenditure incurred on protecting the assets of wholly owned subsidiary i.e. M/s Gujarat Narmada Auto Ltd. - CIT(A) has rightly allowed the claim of the assessee – Decided against Revenue. Repairs and maintenance expenses – Held that:- Following the decision in Gujarat Narmada Valley Fertilizers Co. Ltd. Versus The ACIT Bharuch Range, Bharuch [2013 (8) TMI 628 - ITAT AHMEDABAD] – the replacement of stores and spares can be sued independently and its of replacement of plant and machinery - it has endorsing benefit to the assessee - The matter is required to re-examine with reference to addition confirmed by the CIT(A) – thus, the matter is remitted back to the AO for fresh consideration – Decided in favour of Revenue.
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