Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2018 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (8) TMI 1647 - HC - Income TaxClaim of depreciation on Foreign Exchange Fluctuation - Held that:- Question no.1 has already been decided against the revenue by way of a judgement in the case of CIT v. Woodward Governor India (P) Ltd. [2009 (4) TMI 4 - SUPREME COURT]. Relief under Section 35D(2)(C)(iv) - no such claim was made by the assessee before the Assessing Officer during the assessment proceedings in as much as the expenses claimed were not incurred in connection with the installation of Plant and Machinery or construction of the infrastructure of the Company ? - Held that:- The question no.2 has also been decided against the revenue by way of several judgements all over India including the case of Autolite India Ltd. v. CIT [2003 (7) TMI 53 - RAJASTHAN HIGH COURT] in which it has been categorically held that the expenses incurred on issue of public subscription of shares or of debentures of the company, any payment made against commission, brokerage and charges for drafting, typing, printing and advertisement of the prospectus would be eligible for benefit of Section 35D Capitalization of expenses incurred on advertisement, salary and wages, travelling and conveyance and staff welfare expenses - Held that:- There are concurrent judgements of the CIT as well as that of the Tribunal that any amounts expended by an assessee, which are pre-operative in nature and are in fact made prior to coming in or the existence of the business itself would no doubt be a capital expenditure and, therefore, both the CIT as well as the Tribunal have allowed the assessee to capitalise the expenses made prior to the existence or the formation of the Company and have allowed depreciation on them as capital expenses and rightly so on facts there is no doubt that these amounts, which were expended by the assessee were prior to the setting up of the business and prior to the date when the business ran or started making profits. - decided in favour of assessee
|