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TMI Blog2015 (12) TMI 690X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee is aggrieved by the order of the CIT(A) in upholding the disallowance of investment allowance and the depreciation on Plant & Machinery relating to cement unit for the year under consideration. It is the case of the assessee that the CIT(A) has failed to appreciate the findings given by the Tribunal in in the assessee's own case (dt. 27-07-1995) that fertilizer business and cement business constitute same business and the said order of the Tribunal has become final as the same was not challenged by the Revenue before the Hon'ble High Court. It is the grievance of the assessee that the CIT(A) has erred in holding that fertilizer business and the cement business carried on by the assessee are separate and do not constitute sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resents expenditure incurred in connection with the financing arrangements made for cement project during the year 1983 and that this amount was shown under the head 'Incidental expenditure' during the construction of the project in the company's balance sheet. Before the AO, assessee claimed that the expenditure is for the purpose of business as the cement business is a part of the fertilizer unit and therefore, the financial charges should be allowed as 'expenditure relatable to business. It was also claimed that the assessee-company had commenced extraction of lime stone from mines and therefore, it has commenced cement business. The AO, however, observed that the cement unit did not commence production by 31-12-1983. To ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enue preferred an appeal before ITAT which was rejected. Against the same, the Revenue preferred an appeal raising grounds only as to whether the cement unit was set up and commenced commercial production and hence, the assessee was entitled to depreciation and investment allowance for the AY. 1984-85 and whether the disallowance under Rule 6D has to be worked out taking all the trips of the employees together. Hon'ble High Court vide orders dt. 05-12-2011 held that the manufacturing of cement has not started and therefore, the assessee is not entitled to the depreciation and investment allowance. Thus, the issue was decided in favour of the Revenue. Against the order of the Hon'ble High Court, the assessee preferred an appeal befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nditure of the cement unit cannot be disallowed. 5. Ld. DR, on the other hand, supported the orders of the authorities below. 6. Having regard to the rival contentions and the material on record, we find that the CIT(A) did not disturb the interest allowed on capital borrowed for the purpose of cement unit vide ITAT's order dt. 31-01-2013 by holding that the cement business forms part of the fertilizer business. However, she disallowed the claim of depreciation and investment allowance. As regards the interest and other expenditure is concerned, we find that the findings of the Tribunal have attained finality that both fertilizer unit as well as the cement unit form part of the same business and has been accepted and followed by the R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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