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2015 (3) TMI 313 - AT - Income TaxDisallowance of depreciation u/s 32 - invoking Explanation 3 of Section 43(1) of the I.T. Act, 1961 - CIT(A) deleted the addition - Held that:- The benefit of enhanced depreciation got almost mitigated because of interest payment of the outsider viz. all banks as is evident from the working submitted. The assessee has taken loan from Banks for making payment for availing this facility and had paid more than 2 crores towards loan processing charges. The AO has not disputed the objective with which assessee had made this arrangement. The mainprimary objective of assessee is relevant for purposes of Explanation 3. If the primary objective was not tax reduction. The Explanation 3 could not be invoked. No infirmity in the order of the Ld. CIT(A) and therefore, no interfere is required on our part, hence, we uphold the impugned order passed by the Ld. CIT(A), which is in accordance with the ITAT’s Order in assessee’s own case for the Asstt. Year 2007-08 [2015 (3) TMI 319 - ITAT DELHI] - Decided in favour of assessee.
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