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2015 (2) TMI 331 - HC - Income TaxProduct Registration expenses - revenue v/s capital expenditure - Held that:- Decided in favour of assessee by allowing the expenses as revenue expenditure as relying on CIT Vs. Torrent Power Limited [2013 (4) TMI 570 - GUJARAT HIGH COURT] AND CIT vs. Cadila Healthcare Limited [2013 (3) TMI 539 - GUJARAT HIGH COURT] Dis-allowance of interest - advances given have been continuing for a long period of time - Held that:- Once it is established that there was nexus between the expenditure and the purpose of the business (which need not necessarily be the business of the assessee itself), the Revenue cannot justifiably claim to put itself in the arm-chair of the businessman or in the position of the board of directors and assume the role to decide how much is reasonable expenditure having regard to the circumstances of the case. No businessman can be compelled to maximize its profit. The income-tax authorities must put themselves in the shoes of the assessee and see how a prudent businessman would act. The authorities must not look at the matter from their own view point but that of a prudent businessman. As already stated above, we have to see the transfer of the borrowed funds to a sister concern from the point of view of commercial expediency and not from the point of view whether the amount was advanced for earning profits. Respectfully following the ratio laid in the judgement of the Hon'ble Jurisdictional High Court in the case of CIT vs. Raghuvir Synthetics Ltd. (2013 (7) TMI 806 - GUJARAT HIGH COURT), we cannot uphold the action of the authorities below. - Decided in favour of assessee Disallowance of depreciation - Held that:- In the present case, the assessee has produced the evidence of electricity power consumption that goes to show that the Plant was running and this fact is not rebutted by placing any contrary evidence on record by the Revenue that the electricity so consumed for any other purpose. Therefore, respectfully following the ratio laid down by the Hon'ble Jurisdictional High Court in the case of ACIT vs. Ashima Syntex Ltd.(2000 (8) TMI 22 - GUJARAT High Court), we hereby delete the dis-allowance and direct the AO to allow the depreciation amounting to ₹ 28,77,600/- as claimed by the assessee. - Decided in favour of assessee
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