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2017 (4) TMI 669 - SUPREME COURTNature of expenditure - interest and other expenditure incurred towards creation assets - revenue or capital expenditure - HC [2006 (2) TMI 677 - GUJARAT HIGH COURT] confirms ITAT order in allowing expenditure claimed as followed the decision of the Gujarat High Court in the case of CIG v. Core Health Care (2001 (4) TMI 46 - GUJARAT High Court) - Held that:- We find that this Court in the case of Deputy Commissioner of Income Tax, Ahmedabad v. Core Health Care Ltd. (2008 (2) TMI 8 - SUPREME COURT OF INDIA) has affirmed the view taken by the Gujarat High Court as relied upon by ITAT. Income Tax Appellate Tribunal was justified in allowing the expenditure towards the interest paid on the loans taken and expenditure on other items connected connected herewith for establishment of the unit, while affirming the order of the Commissioner of Income Tax (Appeals). Depreciation on the amount of interest which has been allowed as revenue expenditure - Held that:- Be that as it may, if as a fact the respondent has taken any depreciation on the amount of interest and other items which has been allowed as revenue expenditure that much depreciation should be reversed by the assessing authority.
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