Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 1850 - ITAT PUNEHigher rate of depreciation of 80% on part cost incurred in order to bring windmill into existence and working condition - llowability of MEDA charges, civil work, application charges, professional fees, and bank charges as revenue in nature allowable u/s.37 - Held that:- We find that the assessee in A.Y. 2007-08, the assessee has claimed the depreciation @ 80% on foundation on windmill is concerned, the same was found in the line of judgment in the case of Cooper Foundary Pvt. Ltd.[2011 (6) TMI 837 - BOMBAY HIGH COURT] therefore, it was held allowable with regard to MEDA charges, civil work, application charges, professional fees, and bank charges to the extent of such expenditure referred to the item of windmill eligible to 80% of depreciation and the same should be allowed in order to allocate ocean of such expenditure of 80% on eligible assets and others. The Assessing Officer was directed to consider the submissions of the assessee and thereafter allocate the cost and re-compute the depreciation accordingly. So far as other additional ground relating to allowability of MEDA charges, civil work, application charges, professional fees, and bank charges as revenue in nature allowable u/s.37 of I.T. Act, is concerned, the same was held to be disallowed to be admitted following the ratio of Hon’ble Supreme Court in the case of NTPC[1996 (12) TMI 7 - SUPREME COURT]. On this aspect also, the matter was remitted to the file of the Assessing Officer who has directed to consider the said additional ground raised by the assessee on its merits after providing the reasonable opportunity of hearing to the assessee. Thus, this alternative ground was allowed for statistical purposes. - Appeal filed by the assessee is allowed for statistical purposes
|