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2015 (12) TMI 690 - AT - Income TaxDisallowance of investment allowance and the depreciation on Plant & Machinery relating to cement unit - Held that:- CIT(A) did not disturb the interest allowed on capital borrowed for the purpose of cement unit by holding that the cement business forms part of the fertilizer business. However, she disallowed the claim of depreciation and investment allowance. As regards the interest and other expenditure is concerned, we find that the findings of the Tribunal have attained finality that both fertilizer unit as well as the cement unit form part of the same business and has been accepted and followed by the Revenue. However, this finding will not apply to the claim of depreciation as well as the investment allowance. The claim of depreciation as well as investment allowance is asset specific and are allowable only when the assets are installed and put to use. In the case before us, the AO has clearly brought out on record that the machinery was not installed by the end of the relevant previous year i.e., 31-12-1983 in the case of assessee which fact has been considered and accepted by the Hon'ble High Court of AP. When the machinery has not been installed and used by the assessee for the purpose of manufacturing of cement, then the claim of depreciation and investment allowance is rightly not allowed by the AO. In view of the same, we do not see any reason to interfere with the order of the CIT(A) - Decided against assessee.
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