2020 (2) TMI 547 - HC - Income Tax

Disallowance made on account of depreciation claimed on infrastructure facility - HELD THAT - This tax appeal is admitted on Question No.2A, which reads thus; (A) Whether the Appellate Tribunal has erred in law and on facts in deleting the disallowance made on account of depreciation claimed on infrastructure facility amounting to ₹ 5,69,94,451/- without properly appreciating the facts of the case and the material brought on record?

Summary

Issues involved:
1. Disallowance of depreciation on infrastructure facility
2. Disallowance of forex loss
3. Disallowance under section 14A of the Income Tax Act

Analysis:

1. Disallowance of depreciation on infrastructure facility:
The High Court dismissed the tax appeal concerning the disallowance of depreciation on an infrastructure facility for the Assessment Year 2014-15. The Revenue contended that the Appellate Tribunal erred in law and on facts by deleting the disallowance without proper appreciation of the case facts and evidence. However, the Court upheld the Tribunal's decision on this issue.

2. Disallowance of forex loss:
The Court also dismissed the appeal regarding the disallowance of forex loss amounting to ?8,45,40,916. The Revenue argued that the Tribunal erred in law and on facts by deleting this disallowance without proper consideration of the case details and evidence. However, the Court upheld the Tribunal's decision on this issue as well.

3. Disallowance under section 14A of the Income Tax Act:
The appeal on the disallowance made under section 14A of the Income Tax Act for ?46,29,684 was also dismissed by the High Court. The Revenue claimed that the Appellate Tribunal wrongly deleted this disallowance without a proper understanding of the case facts and evidence. However, similar to the previous issues, the Court upheld the Tribunal's decision on this matter.

In summary, the High Court upheld the decisions of the Appellate Tribunal on all three issues raised by the Revenue in the tax appeal under Section 260A of the Income Tax Act, 1961. The Court dismissed the appeal concerning the disallowance of depreciation on an infrastructure facility, disallowance of forex loss, and the disallowance under section 14A of the Act for the Assessment Year 2014-15.