2015 (4) TMI 1057 - SCH - Income Tax

Depreciation on enhances value of assets Intention to reduce tax liability or not - Slump sale Held that - HC order upheld 2014 (10) TMI 398 - GUJARAT HIGH COURT - At the time of transfer of the assets, the assessee had no income for it to reduce its tax liabilities by way of such transfer, both the CIT (A) and the Tribunal had rightly concluded that the AO was in error in invoking Explanation 3 to Section 43 for determining actual cost in the deal Decided against revenue. Interest expenditure on unpaid purchase consideration disallowed Held that - HC order upheld 2014 (10) TMI 398 - GUJARAT HIGH COURT - in view of introduction of Explanation 8 to Section 43 (1) of the Act which was held retrospective in nature, the interest cannot be capitalized which was paid after the slump sale was effected and the factory was in operation, and therefore, expenses were revenue in nature - The directions given to the AO to allow the amount of interest of ₹ 1.57 Crores is upheld Decided against revenue.

Summary

Title: Supreme Court of India dismisses Special Leave Petition

Citation: 2015 (4) TMI 1057 - SC

Reference: 2014 (10) TMI 398 - Gujarat High Court

Judges: MR. RANJAN GOGOI AND MR. N.V. RAMANA, JJ.

Representation: Mr. Mukul Rohatgi, AG, Mr. S.A. Haseeb, Adv., Ms. Sadhna Sandhu, Adv., Mrs. Anil Katiyar, Adv.

Decision: Delay condoned. Special Leave Petition dismissed.