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2018 (4) TMI 804

Bond India Ltd., Vs. Commissioner of Income Tax reported in (1997 (2) TMI 11 - SUPREME Court) and held that the expenditure incurred in respect of the issue of share is "capital expenditure". - Claim of depreciation - Held that:- Since the authorities below as well as the Income Tax Appellate Tribunal found that the SRHSHL had fabricated the machinery by 22.7.94 and sold the machinery to Veera Enterprises on 22.9.95 and Veera Enterprises sold the machinery to the assessee on 25.9.95, which in turn is stated to have leased the machinery back to the vendor, SRHSHL. While the sale was effected in favour of Veera Enterprises, the Tribunal noted the sale consideration at ₹ 16,86,904/- including the sales tax. However, when the machiner .....

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amount of depreciation claimed by the appellant?" 4. The first question to be considered is with regard to the expenditure incurred in connection with the share issue by the assessee. According to the assessee, the Tribunal merely relied upon the decision of the Hon'ble Supreme Court in the case of Brooke Bond India Ltd., Vs. Commissioner of Income Tax reported in (1997) 225 ITR 0798 (SC). 5. We have perused the order passed by the Tribunal and in paragraph No.2 of the impugned order, this issue has been dealt with. From the order, we find that the Tribunal has rightly applied the decision of Brooke Bond India Ltd., Vs. Commissioner of Income Tax reported in (1997) 225 ITR 0798 (SC) and held that the expenditure incurred in respec .....

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utilized because the Assessing Officer has clearly stated that the assessee could not have carried on its day to day work without this air pollution control equipment. Still in the interest of justice we set aside the order of the CIT(Appeals) and remit the matter back to the file of the Assessing Officer for re-verification. Whether the machinery was used by SRHSHL between 22.07.1994 to 22.09.1995 and if such use was made then depreciation can be allowed only on ₹ 16,95,338/-. We are giving this direction because Revenue has not filed any appeal for allowing depreciation on ₹ 16,95,338/-. 10. After elaborately hearing the learned counsel for the appellant/assessee, we find that there is absolutely no material to dislodge the f .....

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