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2021 (4) TMI 576 - AT - Income TaxDepreciation @ 60% on STBs - HELD THAT:- As decided in own case [2020 (5) TMI 190 - ITAT CHANDIGARH] wherein held that Transaction of acquiring of STBs by the assessee was a loan/financial transaction meaning thereby the STBs were purchased by the assessee to put to use in its business. STBs are further given to the consumers on hire purchase agreement which are deemed to be sold to the consumers after three years from the date of delivery/installation - assessee had put the STBs in its business from the date it acquired/purchased the same. In view of this, the assessee is entitled to deprecation irrespective of the date of installation of STBs in the premises of the consumers. This issue is accordingly allowed in favour of the assessee. Addition of the total interest claimed by the assessee - HELD THAT:- As decided in own case [2020 (5) TMI 190 - ITAT CHANDIGARH] Counsel has demonstrated that there were sufficient own funds available with the assessee company in the form of share capital and reserves to meet the advance given - During the year relevant to the assessment year under consideration, the assessee has shown capital work in progress amounting to ₹ 2,32,75,003 but had not capitalized the interest on the same for the reason that the appellant had huge interest free reserves and own funds. As pointed out by the ld. CIT(A), ld. AR demonstrated during the appellate proceedings that the assessee had share capital and reserves to the tune of ₹ 145.34 crore and ₹ 63.52 crore respectively to meet the capital work in progress. Since, there is no material change in the facts of the present case, the Ld. CIT(A) has rightly deleted the addition made by the AO by following the decision of the coordinate Bench. In our considered view, the findings of the ld. CIT(A) are in accordance with the decision of the coordinate Bench rendered in the assessee's own appeals for the assessment years 2012-13 to 2015-16. Addition u/s. 14A - Sufficiency of own funds - HELD THAT:- As decided in own case [2020 (5) TMI 190 - ITAT CHANDIGARH] no disallowance is attracted u/s. 14A of the Act in case the assessee has not earned any income not forming part of the total income. This issue is accordingly decided in favour of the assessee Depreciation on the custom duty component and all incidental costs for acquiring assets from CISCO - AO observing that since the assessee has claimed depreciation it cannot claim deduction u/s. 37 of the Act for the amount of lease rent paid to CISCO - HELD THAT:- As decided in own case The assessee is entitled only to claim interest paid as part of the said lease rentals as expenditure u/s. 36(1)(iii) of the Income Tax Act. The assessee, in view of the discussion made above, is not entitled to claim the principal component of alleged lease rent paid as 'revenue expenditure' u/s. 37(1) of the Act. However, the assessee is also entitled to claim depreciation on the said assets purchased from borrowed capital. - Decided against assessee.
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