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2018 (4) TMI 88 - HC - Income TaxRevision u/s 263 - addition towards interest granted under section 244(1A) to the assessee - whether interest granted under Section 244 (1A) escaped inclusion in the income chargeable to tax? - Held that:- We answer the first question framed, being one on facts, in favour of the assessee and against the department. The assessee was perfectly right in having included the interest received in 1992-93 in the A.Y. 1993-94, as income. The deletion made by the Tribunal of the addition of a sum of ₹ 88,007/- towards interest granted under Section 244(1A), was perfectly justified. - Decided against revenue Expenses incurred towards the construction of the houses to the weaker sections of the society come under business expenditure under section 37 - Held that:- Commissioner was exercising powers under Section 263 to undo the erroneous assessment carried out by the A.O; which were prejudicial to the interest of the Revenue. The Tribunal egregiously erred in qualifying the amounts expended by the assessee in charity, as one “wholly and exclusively” laid out or expended for the purpose of business; for reason of the incidental goodwill and popularity garnered by such charitable act. The question has to be answered against the assessee and in favour of the Revenue. Entitled to depreciation u/s 32 for the expenses incurred towards installation of plant and machinery at their Palghat Unit - Held that:- Third question too has to be answered in favour of the Revenue and against the assessee since the assessee had not commenced production in the relevant assessment year and the depreciation claim on the basis of the installation of plant and machinery and readying the unit for use for business purposes, cannot be sustained in the wake of the overwhelming precedents noticed against such a claim
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