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2017 (3) TMI 1335 - AT - Income TaxDisallowance of depreciation on Wind Energy Generators - Held that:- A decided in assessee' own case for previous AY It is an undisputed fact that the income from lease has been considered by Assessee as income It is an undisputed fact that the AO has considered the lease entered by the Assessee to be a Finance lease to arrive at the conclusion that the assessee is not entitled to depreciation. We find that the issue of depreciation on leased assets has been decided by Honourable Apex Court in the case of ICDS Ltd [2013 (1) TMI 344 - SUPREME COURT ] - Decided in favour of assessee Addition u/s 14A - Held that:- As mentioned elsewhere, the assessee was having sufficient own funds to meet out the tax free investment. Thus we do not find any merit in considering the interest expenses for the computation of disallowance u/s. 14A of the Act. To this extent, we set aside the findings of the ld. CIT(A) and direct the A.O. to delete the addition of ₹ 29,35,41,415/-.However, in our considered opinion, administrative expenses need to be disallowed and since the assessee has made suo moto disallowance of ₹ 63,84,525/-, in our considered opinion, this should meet the ends of justice. We, accordingly, confirmed the suo moto disallowance of ₹ 63,84,525/-. Securitization gains amortised as per RBI guidelines and non-allowance of such realized gains - Held that:- The amortization merely represents a timing difference and since the bank is consistently making profits and paying tax at the highest rate without claiming any tax holiday benefit, it can be safely concluded that the method followed is revenue neutral. Disallowance of bad debts - Held that:- As decided in assessee’s own case for A.Y. 2002-03, 2001-02 & 2003-04 Non-convertible debentures are in the type of advancing funds to various companies and the income which is taken as interest and assessable as business income. For the banks, giving of loans is part of its business and any bad debt arising therein is covered u/s 36(l)(vii) as bad debt, whether it is loan or nonconvertible debentures. - Decided in favour of assessee Advertisement expenditure - Allowance as business expenditure - expenditure on advertisement and publicity to change the Bank’s name from UTI Bank to Axis Bank - Held that:- It is not possible to agree with the appellant-Revenue that the advertisement expenses incurred by the respondent-assessee at the time of installation of additional machinery in the existing line of business resulted in any enduring benefit, so as to be treated as capital in nature. A special advertisement campaign driven by the assessee to bring public awareness to the change in the name from UTI Bank to Axis Bank - Decided in favour of assessee.- Decided in favour of assessee
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