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2015 (11) TMI 21 - AT - Income TaxAdvance Against Depreciation (AAD) added to Book Profit u/s 115 JB - MAT computation - Held that:- The issue is no longer res-integra as it is covered by the decision of Hon'ble Supreme Court in the case of NHPC Vs. CIT (2010 (1) TMI 281 - SUPREME COURT)in which it was held as AAD is a timing difference, it is not a reserve, it is not carried through profit and loss account and that it is "income received in advance" subject to adjustment in future and, therefore, clause(b) of Explanation-I to section 115JB is not applicable. - Decided in favour of assessee. Teatment of catchment area treatment expenses - revenue v/s capital - Held that:- CAT expenditure is related to carrying on of the business operations of the assessee. It is an integral part of the profit earning process. Moreover the expenditure has not resulted in the acquisition of any tangible/ intangible asset. The expenditure therefore is revenue in nature. Merely because the expenditure results in enduring benefit is not enough to categorize it is capital in nature. This issue has been settled by the Supreme Court in Empire Jute Co. Ltd. Vs. CIT (1980 (5) TMI 1 - SUPREME Court) - Decided in favour of assessee.
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