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2009 (12) TMI 49 - HC - Income TaxDepreciation – u/s 32 on standby parts – standby parts were not taken for use – Expenditure related to fixed deposits – investment allowance - revenue versus capital expenditure – setoff of unabsorbed expenditure from income from house property - held that – depreciation should be allowed on standby spare parts even though they were not taken for use during the year - investment allowance should be allowed on standby spare parts even though they were not taken for use during the year - the act of borrowing money was incidental to the carrying on of business, the loan obtained was not an asset or an advantage of enduring nature, the expenditure was made for securing the use of money for a certain period and it was irrelevant to consider the object with which the loan was obtained and therefore, the amount spent was not in the nature of capital expenditure and was laid out or expended wholly and exclusively for the purpose of the assessee's business and was therefore allowable as a deduction - the very statute provides that such a set off can be done till the provision was amended with effect from 1.4.2002 – setoff was allowed – decided in favor of assessee
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