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2015 (11) TMI 987 - AT - Income TaxDepreciation on Plant & Machinery, Furniture & fixtures, Office equipments - addition made during the year between as per block of assets as per companies Act and block of asset as per Income Tax Rules - Held that:- We have observed that assessee has claimed depreciation on furniture & fixture of ₹ 67,98,208/- in distillery & chemical division and furniture & fixture of ₹ 40,65,104 in sugar division and has claimed lower depreciation while merging the office equipment into furniture & fixture an no prejudice is caused to the Revenue and hence the claim of assessee is hereby allowed. - Decided in favour of assessee. Disallowance of amount paid as stamp fees for the agreement pertaining to the Co- Gen project in respect of the agreement entered into for US grant/aid - Held that:- We are of the considered view that the expenditure was incurred by the assessee towards the stamp fee is a capital expenditure which inextricably linked to the capital subsidy of ₹ 167.30 lacs and thus we find no reasons to interfere with the orders of authorities below and the same is hereby affirmed. - Decided against assessee. Additional sugar cane price assessee claimed on the basis of purchase of sugar cane - Held that:- We hold that assessee is following the mercantile system of accounting. Assessee is entitled for the claim of expense on Revenue/trading account on crystallization of the law. In the said amount in assessment year 2005-06 although it might pertain to assessment year 2002-03. Hence assessee will be entitled for the said claim for the assessment year 2005-06 subject to verification on merits by authorities below about the bonafide and genuineness of the claim. The authorities below are also directed to verify that the assessee's claim is allowed not more than once. The assessee has claimed that this amount in assessment year 2002-03, 2004-05, 2005-06 and 2006-07. Subject to above verification additional claim should be allowed only in assessment year 2005-06 subject to verification and checking by the authorities below and hence the claim of assessee for impugned year is rejected. - Decided in favour of assessee by way of remand. Deduction u/s 80HHC - Held that:- A decided in case of Ajanta Pharma Ltd. Vs. CIT [2010 (9) TMI 8 - SUPREME COURT] If the dichotomy between "eligibility" of profit and "deductibility" of profit is not kept in mind then section 115JB will cease to be a self-contained code. In section 115JB, as in section 115JA, it has been clearly stated that the relief will be computed under section 80HHC(3)/(3A), subject to the conditions under subsections (4) and (4A) of that section. The conditions are only that the relief should be certified by the Chartered Accountant. Such condition is not a qualifying condition but it is a compliance condition. Therefore, one cannot rely upon the last sentence in clause (iv) of Explanation to section 115JB [Subject to the conditions specified in sub-sections (4) and (4A) of that section] to obliterate the difference between "eligibility" and "deductibility" of profits as contended on behalf of the Department. - Decided in favour of assessee.
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