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2010 (12) TMI 743 - ITAT, NEW DELHIDepreciation @ 40% or 25% on Jigs and Fixtures - Held that: issue involved is squarely covered in favour of the assessee through the several decisions of the Tribunal - Since there is not change in law and facts in the current year as the same in earlier years, we accordingly, direct the Assessing Officer to grant depreciation @ 40% Regarding u/s 40a(i) - Application Works Fees - Capital or revenue expenditure - Held that: payments for the prototypes i.e. application works cannot be said to be providing advantage of enduring benefit so as to fall in the capital field - Apex Court in the case of the Empire Jute Co. Ltd. vs C.I.T. (1980 -TMI - 5837 - SUPREME Court) it was held that deciding upon where the expenditure is capital or revenue what is the material to be considered the nature of the advantage in the commercial sense and it is only where the advance is under the capital field that the expenditure would be disallowable on an application of this test - The prototype only facilitates development of appropriate ACs comprising of compressor, condensers, evoparoters, cooling units - Thus these prototypes by themselves only facilitate the development of the new models of these air conditioners. - this cannot be termed as capital expenditure. Decided in favour of the assessee
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