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2016 (2) TMI 737 - AT - Income TaxDisallowance of interest paid on the loan - loan applied for acquisition of the land until the date of construction of the building was completed by holding that the same has to be capitalized - Held that:- We find force in the contention of the learned AR. Since the land was handed over for construction on the very same day it was purchased, it is obvious that the land was put to use for the purpose of business of the assessee. Hence the interest attributable for purchase of the land should be treated as allowable business expenditure and need not be capitalized. Therefore we hereby direct the learned Assessing Officer to delete the addition made by him on this count. - Decided against revenue Restriction of excess depreciation claimed on software - Held that:- CIT relying on the decision in the case of Amway India Enterprises Vs. DCIT [2008 (2) TMI 454 - ITAT DELHI-C] correctly held that the assessee would be entitled for depreciation @ 60% since “computer software” falls in the category of “plant”. On perusing the facts of the case, we find the decision of learned CIT(A) to be justified because the Special Bench of the Tribunal (supra) has categorically held that with effect from 01.04.2003 “computer software” has to be classified as “tangible asset” under the heading ‘plant’ as mentioned in Appendix I to Income Tax Rules, 1962. Therefore we do not find it necessary to interfere with the order of the CIT (A) on this issue.- Decided against revenue
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