TMI Blog2007 (7) TMI 284X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee - Whether Tribunal was right in holding that stand by assets which are not put to use during the relevant year are entitled to depreciation – Held, yes - 1039 to 1042 of 2007 and 1 of 2007 - - - Dated:- 13-7-2007 - P. D. DINAKARAN and P.P.S. JANARTHANA RAJA JJ. J. Naresh Kumar for the appellant. JUDGMENT The judgment of the court was delivered by P. D. Dinakaran J.- T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f expenditure incurred on issue of debentures and collection of fixed deposits as a revenue expenditure. The Assessing Officer disallowed the claim, as also the depreciation on stand by machinery. Aggrieved by the assessment orders, the assessee filed appeals before the Commissioner of Income-tax (Appeals), who allowed the same following the earlier orders, which, on appeals at the instance of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court in CIT v. Mahindra Ugine and Steel Co. Ltd. [2001] 250 ITR 696 and the decision of this court in CIT v. Investment Trust of India Ltd. [2003] 264 ITR 506, held that the expenses relating to obtaining fixed deposits are closely linked with the business requirement of the assessee and hence, such expenses are allowable expenses. 5. That apart, the same Division Bench of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e settled propositions of law, we hold that the expenditure incurred on issue of debentures and collection of fixed deposits are revenue expenditure. 7. With regard to the second issue, this court in the same judgment, viz., in the assessee's own case in T. C. (A) Nos. 74 and 75 of 2003, dated January 29, 2007 ( CIT v. Southern Petrochemical Industries Corporation Ltd. [2007] 292 ITR 362 (M ..... X X X X Extracts X X X X X X X X Extracts X X X X
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