TMI Blog2013 (7) TMI 471X X X X Extracts X X X X X X X X Extracts X X X X ..... was sufficient for the assessee to offer the interest portion alone, as income for taxation - It is seen that whether the method already followed by the assessee is accepted or method proposed by the Revenue is accepted, the ultimate effect is Revenue-neutral - Decided against revenue. Nature of Guarantee commission paid by assessee company to holding company - Debt claim - Held that:- payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1961. The solitary ground raised by the Revenue for the assessment year 200405 is that the Commissioner of Income-tax (Appeals) has erred in deleting the disallowance of deprecation on financial leased assets. It is the case of the Revenue that the Commissioner of Income-tax (Appeals) has failed to note the fact that the asset was used by the lessee and the same was registered in the name of l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cepted and the disallowance is withdrawn, it would be necessary to exclude the principal portion of the lease rental from taxation. It is seen that whether the method already followed by the assessee is accepted or method proposed by the Revenue is accepted, the ultimate effect is Revenue-neutral. We are, therefore, not inclined to interfere with the matter. Let the order of the Commissioner of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of Vijay Ship Breaking Corporation v. Deputy CIT [2002] 76 TTJ (Rajkot) 169. The relevant observation is extracted below : "The expression 'debt-claims' referred to in the definition of the term 'interest' given in the Double Taxation Avoidance Agreement has to be understood in the sense of raising a loan and earning interest therefrom. The expression 'debt-claims' is further qualifie ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
