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2017 (11) TMI 1451 - ITAT KOLKATAAddition of interest on loan from Govt. of West Bengal - Held that:- In the assessee`s case under consideration, the rate of interest, on the loan, is yet to be decided by the Government of West Bengal.We note that the Interest expenditure claimed on estimate basis is not an allowable expenditure under the provisions of lncome Tax Act. It is the claim of interest on account of being unascertained liability. We also note that in the audit conducted by C & AG, a comment was made that interest in respect of the unsecured loan from the Government was short provision resulting in understatement of loss, and therefore based on this comment, it was contended by the assesseethat the interest provided by the assessee was rather on lower side and should be allowed. We do not agree with this contention of the assessee because there is no any cogent evidence available on record from the Lender( Govt. of West Bengal) of the said loan about interest to be charged or not to be charged. Assessee has prayed the Bench that assessee company will get the sanction letter/confirmation from the Government of West Bengal about the rate of interest to be charged, or not to be charged, on such loan. Therefore, the Counsel prayed the Bench that the assessee has already applied to the Govt. of West Bengal,for confirmation letter and will get it very soon. Therefore, we direct the Assessing Officer to take into account the sanction letter/confirmation letter of the Government of West Bengal in respect of the rate of interest which is to be charged on such loan and adjudicate the issue as per the provisions of the Income Tax Act. Therefore, we allow this appeal for statistical purposes. Excess depreciation - Held that:- AO had not disputed that the claim made by the assessee was in accordance with the order of tribunal for Assessment Year 2002-03. However, he has not allowed the claim on ground that the order of tribunal has not become final as the department has filed appeal before High Court. We are of the view that further appeal has been filed, in no way, means that the tribunal’s order under consideration is not operational and effective. Unless and until the order of tribunal is reversed by High Court, the same has to be given due effect. Judicial discipline demands that once an order has been passed in the assessee’s own case, lower authorities are duty bound to act in accordance with the same. Moreover, as stated earlier, CIT(A) and ITAT have taken same view in Assessment Year 2004-05 and 2005-06 also. Thus the assessee is entitled to claim depreciation on the basis of W.D.V. - Decided against revenue
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