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TMI Blog2017 (5) TMI 789X X X X Extracts X X X X X X X X Extracts X X X X ..... claiming following substantial questions of law:- "(a)Whether on the facts and circumstances of the case, the Hon'ble ITAT has erred in holding that Pushar Type Furnaces were installed during the assessment year itself though premises i.e. Plot No. 55 in which the furnaces were installed was taken on rent in the next financial year and this fact was neither denied by the assessee before the ITAT, nor the ITAT appreciated this aspect of the matter. Further from the facts during survey, it was found that these furnaces had not been installed during the financial year 1994-95 i.e. assessment year 1995-96?" (b)Whether on the facts and law, the Hon'ble ITAT was right in holding that deduction in respect of interest to financial institutions w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal before the Tribunal against the order passed by the CIT under Section 263 of the Act. The Tribunal set aside the order passed by the CIT and restored the order of the Assessing Officer holding that there is no error in the order of the Assessing Officer in granting deduction under Section 43B of the Act and depreciation. On the issue of depreciation on Pushar Type Furnaces, the Tribunal by accepting the certificate issued by M/s S.L. Graham and Company Limited held that no other expenditure had been incurred after the close of the current financial year i.e. in the next year. On the issue of disallowance of interest which remained unpaid under Section 43B of the Act, the Tribunal accepted the plea of the assessee that the payments wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment year 1995-96 for the interest liability incurred during the assessment year 1994-95, the allowance could be given for the assessment year 1995-96. It has further been stated that the above relief is subject to the fact that no deduction had been claimed for the assessment year 1994-95 for the amount of interest. The relevant part of the affidavit dated 30.03.2007 reads thus:- "In the instant case (pending before Hon'ble High Court) interest liability incurred during assessment year 1994-95 by the assessee (and remaining unpaid at the end of the period i.e. assessment year 1994-95) was paid by the assesee during assessment year 1995-96 and claimed as deduction, in computation of income for the assessment year 1995-96, is vali ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Engineer installing the furnaces that the same were commissioned in the last week of August 1994 to March 1995, the assessee had rightly claimed depreciation thereon. It was thus concluded that whole of the expenses covered erection and installations were complete before the end of the financial year and hence entitled to depreciation. Thus, no error was found in the order passed by the Assessing Officer granting depreciation. The relevant findings recorded by the Tribunal on this issue read thus:- "Even during the course of revision proceedings the assessee filed photo copy of the certificate from M/s S.L. Graham & Co. certifying that furnace was installed and commissioned in third week of August 1994 and was taken for regular production ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ement for drawing inference is that depreciation is charged only for one month. The depreciation is debited in the books of accounts as per the provisions of Companies Law. Thus it cannot be a conclusive evidence to hold that furnace was not installed as certified by M/s S.L. Graham and Company Limited. It is to be noted that the total cost was worked out at Rs. 87,94,346/-. After the claim of depreciation of Rs. 56,76,917/- for the year under appeal, the balance sum of Rs. 31,17,430/- was claimed as depreciation in the immediately succeeding assessment year. No other expenditure has incurred after the close of financial year and in the next year. Thus this shows that whatever was required to be done regarding installation of the furnace wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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