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2016 (4) TMI 312 - HC - Income TaxFees paid to Clubs - revenue v/s capital expenditure - Held that:- The issue of membership fees paid to the Club being allowed as Revenue expenditure stands has concluded against the Revenue and in favour of the Respondent-Assessee by the decision of this Court in Otis Elevator Co. (India) Ltd. V/s. Commissioner of Income Tax (1991 (4) TMI 53 - BOMBAY High Court ) . Deductibility of interest payments - these payments were capitalized in the books of the company - Held that:- The proviso to Section 36(1)(iii) of the Act which prohibits claiming interest expenditure in respect of amounts borrowed for acquisition of capital assets till such time as it is first put to use has to be capitalized was introduced into the Act by Finance Act 2003 with effect from 1st April, 2004. We are concerned with assessment year 1997-98 i.e. much before the proviso to Section 36(1)(iii) of the Act was introduced. Thus there was no prohibition to claiming of interest paid on funds borrowed for acquisition/purchase of capital asset till such time it is first put to use in the subject assessment year.Tribunal was correct in upholding the deductibility of interest payments. Qualification of accessories to a windmill for 100% depreciation - Held that:- This Court on almost identical facts in CIT V/s. CTR Manufacturing Industries Ltd. (2016 (4) TMI 265 - BOMBAY HIGH COURT) has dismissed the Revenue’s Appeal from the order of the Tribunal allowing the claim for depreciation at the full rate on windmills
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