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2018 (5) TMI 1001 - AT - Income TaxDisallowance of interest cost - whether interest on loans taken on the basis of keyman insurance policies would not fall u/s.43B of the Act - Held that:- There is no dispute that interest to the extent of ₹ 70,35,356/- on loans borrowed from LIC, a public financial institution, stood payable as at the end of relevant previous year. Section 43B of the Act, mandates that interest payments could be allowed only in the year in which it is actually paid. Assessee having not paid interest during the relevant previous year, lower authorities were justified in applying Section 43B of the Act and making a disallowance. - Decided against assessee Recomputation of book profit u/s.115JB by restricting the claim of depreciation on windmills to 5.28% as against 80% reckoned by the assessee - Held that:- Unless an assessee can show that depreciation was provided, by spreading 95% of the original cost, on the specified period, a claim in excess of what is set out in Schedule XIV of the Companies Act, 1956 cannot be allowed. We are therefore of the opinion that lower authorities were justified in recalculating the profit for the purpose of applying Section 115JB of the Act. We do not find any reason to interfere with the orders of the lower authorities. - Decided against assessee
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