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TMI Blog2013 (9) TMI 961X X X X Extracts X X X X X X X X Extracts X X X X ..... s Court has admitted the appeal on the following substantial questions of law: i. Whether the interest on unsecured loan granted by the Government was covered by Section 43 B or not as per the ratio laid down by the Hon'ble Apex Court in New India Mining Corporation vs. CIT 243 ITR 640. ii. Whether on the facts and in the circumstances of the case, the spares can be capitalized and depreciation claimed on it even when they are not used and thus merit allowance u/s 32 and whether a company can take cover under AS-2 even when dis allowance is warranted u/s 32. iii. Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal is justified in law in deleting the addition towards short provision of interest on G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrent account of the State Bank of India and in the current account, nobody can earn interest. Thus, there was no question to earn the interest and Tax thereupon. Therefore, we find no reason to interfere with the impugned order passed by the Tribunal pertaining to Substantial Question of law no. 1. With regard to substantial question of law no. 2, the grievance of the department is pertaining to the depreciation on spare parts. It is a submission of learned counsel that the assessee has purchased various parts for the equipments used in generating electricity. During the assessment year under consideration, the same were capitalized in the books of accounts. The A.O. opined that the machinery part becomes unserviceable. So, no depreciatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowed by the A.O. By considering the totality of the facts and circumstances of the case it may be mentioned that section 43 -B of the Income Tax Act deals with certain deductions to be only on actual payment. Section 43-B, on reproduction reads as under: "43-B : Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowable under this Act in respect of- (a) any sum payable by the assessee by way of tax, duty, cess or fee, by whatever name called, under any law for the time being in force, or (b) any sum payable by the assessee as an employer by way of contribution to any provident fund or superannuation fund or gratuity fund or any other fund for the welfare of employees or (c) a any sum re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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