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2014 (11) TMI 940 - HC - Income TaxAllowability of deduction u/s 36(1)(iii) - Interest paid on borrowings of capital assets not put to use - Held that:- Following the decision in DEPUTY COMMISSIONER OF INCOME-TAX Versus CORE HEALTH CARE LTD. [2008 (2) TMI 8 - SUPREME COURT OF INDIA] - interest on borrowings utilized for purchase of machines are allowed to be deducted because these machines have been used in business. Option to claim partial depreciation or not - Whether assessee had an option in law to claim partial depreciation in respect of any block of assets – Held that:- The Tribunal was rightly of the view the that in Surat Textile Mills Ltd. v. Income tax Officer [2014 (5) TMI 481 - GUJARAT HIGH COURT] it has been held that what the assessee had done was well within thin the legal framework - It was open for the assessee not to claim depreciation till the amendment was made by explanation 5 in section 32(1) of the Act which had the effect only from 1.4.2002 – thus, the order of the Tribunal is upheld – Decided against revenue.
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