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2015 (12) TMI 394 - AT - Income TaxDisallowance of depreciation claimed on Wind Mill - Held that - Since the facts of the present case are identical to the facts as were before the Coordinate Bench in the case of Besto Tradelink Pvt.Ltd.(2009 (10) TMI 896 - ITAT AHMEDABAD), therefore taking a consistent view, we do not see any reason to interfere with the order of the ld.CIT(A) upholding the action of A.O. disallowing the depreciation as the assessee-company never acquired dominion over the Wind Mills, therefore, it is not entitled to depreciation @ 100% as claimed in the assessment year - Decided against assessee. Disallowance of interest expenditure on account of non-deduction of TDS - Held that - We find neither before the assessing authority nor before the appellate authority, the assessee had furnished the proof of requisite Form 15H. Even before the ld.CIT(A), it was contended by the assessee that the Form 15H received from the recipient was not forwarded to CIT(TDS) as required under the Act. Since the assessee failed to furnish the requisite Form 15H, therefore, we do not see any reason to interfere with the order of the ld.CIT(A), same is hereby upheld. - Decided against assessee.
Issues Involved
1. Disallowance of depreciation claimed on Wind Mill. 2. Disallowance of interest expenses due to non-deduction of TDS. Detailed Analysis Disallowance of Depreciation on Wind Mill The first issue pertains to the disallowance of depreciation claimed by the assessee on a Wind Mill amounting to Rs. 32,00,000. The Assessing Officer (AO) disallowed the depreciation on the grounds that the assessee had not paid the full sale consideration for the Wind Mill, and thus, the ownership had not effectively transferred to the assessee. The AO noted several discrepancies, including the fact that the Wind Mill was still registered under RPG Cables Ltd. and not the assessee, and there was no credible evidence of power generation by the Wind Mill in March 2008. The Commissioner of Income Tax (Appeals) [CIT(A)] upheld the AO's decision, emphasizing that the Wind Mill's ownership had not been transferred to the assessee, as confirmed by the Karnataka Power Transmission Corporation. The CIT(A) cited a similar case, Besto Tradelink Pvt. Ltd. vs. ACIT, where the Tribunal held that without acquiring dominion over the Wind Mill, the assessee could not claim depreciation. The Tribunal agreed with the findings of the AO and CIT(A), noting that the facts of the present case were identical to those in the Besto Tradelink Pvt. Ltd. case. The Tribunal upheld the disallowance of depreciation, concluding that the assessee did not acquire dominion or control over the Wind Mill, and thus, was not entitled to claim depreciation. Disallowance of Interest Expenses Due to Non-Deduction of TDS The second issue involves the disallowance of interest expenses amounting to Rs. 37,866 due to the non-deduction of Tax Deducted at Source (TDS). The AO observed that the assessee failed to furnish proof of filing Form 15H before the CIT(TDS), which is mandatory for non-deduction of TDS. Consequently, the AO disallowed the interest expenses. The CIT(A) confirmed the AO's finding, reiterating that the assessee did not provide the requisite Form 15H. The Tribunal found that neither before the AO nor the CIT(A) had the assessee furnished proof of the requisite Form 15H. The Tribunal upheld the disallowance of interest expenses due to the failure to furnish the necessary documentation, thereby dismissing the assessee's appeal on this ground. General Grounds The third ground of appeal was general in nature and did not require independent adjudication. Conclusion The Tribunal dismissed the appeal of the assessee, upholding the disallowances made by the AO and confirmed by the CIT(A) regarding the depreciation on the Wind Mill and the interest expenses due to non-deduction of TDS. The order was pronounced in the Court on October 25, 2015, at Ahmedabad.
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