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2015 (5) TMI 305 - AT - Income TaxInterest income - “Income from other sources” or “Business income” - Held that:- From the above submissions of the assessee, it is apparent on the record that the interest income has been earned by the assessee on the security deposits with the bank as per the Common Loan Agreement. The said interest income had been earned by the assessee out of business compulsions of deposits in the ‘Debit Service Reserve Account’, hence the said interest income is linked to the business activities of the assessee. The issue is covered with the decisions of the Tribunal in the own case of the assessee for earlier assessment years. Hence, the interest income of the assessee is ordered to be assessed as Business Income. - Decided against revenue. Depreciation on toll road - Held that:- Factually speaking, it is wrong to say that impugned right acquired by the assessee was without incurrence of any cost. In fact, it is quite evident that assessee got the right to collect toll for the specified period only after incurring expenditure through its own resources on development, construction and maintenance of the infrastructure facility. Secondly, section 32(1)(i1) permits allowance of depreciation on assets specified therein being 'intangible assets' which are wholly or partly owned by the assessee and used for the purposes of its business. The aforesaid condition is fully satisfied by the assessee and therefore considered in the aforesaid perspective we find no justification for the plea raised by the Revenue before us. The assessee is entitled to the claim of depreciation on the road to collect toll being an intangible asset falling within the purview of section 32(1) (ii) of the Act. - So far as the other alternative contention of the assessee that the project be treated as plant & machinery and the depreciation be accordingly allowed to it, we do not find that the said license of right to collect toll in any way falls in the definition of plant & machinery. Even the assessee is not the owner of the toll road. The assessee has been given only the right to develop, maintain and operate the toll road and further to collect the toll for the specified period. This right as discussed above is an intangible asset falling under section 32(1)(ii) of the Act. - Decided in favour of assessee. Disallowance of claim of expenses incurred in relation to increase in authorized share capital - Held that:- There is no dispute on the point that the authorized share capital was raised by the assessee in connection with the extension of the undertaking. The nature of the expenses indicates that the same were in the shape of stamp duty and registration charges. The cumulative reading of the entire provisions of section 35D would reveal that the nature of expenses in this case is such that it would fall within the purview of residuary clause (d) of section 35D(2). In the case in hand, admittedly, the assessee had incurred the expenditure for raising of share capital for the purpose of expansion of business. In view of the decision of the co-ordinate bench of the Tribunal in the case of “M/s. Chiranjeevi Wind Energy vs. ACIT” (2013 (12) TMI 905 - ITAT CHENNAI ) and also in view of our observations made above, we hold that the assessee is entitled to the amortization of the said expenses. - Decided in favour of assessee.
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