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TMI Blog2016 (4) TMI 312X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of capital assets till such time as it is first put to use has to be capitalized was introduced into the Act by Finance Act 2003 with effect from 1st April, 2004. We are concerned with assessment year 1997-98 i.e. much before the proviso to Section 36(1)(iii) of the Act was introduced. Thus there was no prohibition to claiming of interest paid on funds borrowed for acquisition/purchase of capital asset till such time it is first put to use in the subject assessment year.Tribunal was correct in upholding the deductibility of interest payments. Qualification of accessories to a windmill for 100% depreciation - Held that:- This Court on almost identical facts in CIT V/s. CTR Manufacturing Industries Ltd. (2016 (4) TMI 265 - BOMBAY HIGH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no.1: (i) Mr. Arvind Pinto, the learned counsel for the Revenue very fairly states that the issue of membership fees paid to the Club being allowed as Revenue expenditure stands has concluded against the Revenue and in favour of the RespondentAssessee by the decision of this Court in Otis Elevator Co. (India) Ltd. V/s. Commissioner of Income Tax (1992) 195 ITR 682. (ii) In the above view, question no.1 as formulated does not give rise to any substantial question of law. Thus not entertained. 4. Regarding Question no.2 : (a) The Respondent-Assessee in its return of Income had claimed interest expenditure of ₹ 10.85 crores as deduction under Section 36(1) (iii) of the Act. This was interest expenditure incurred on purchase/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for which the borrowing is made was irrelevant while considering the allowing of interest expenditure as deduction under Section 36(1)(iii) of the Act. (e) In any view, the proviso to Section 36(1)(iii) of the Act which prohibits claiming interest expenditure in respect of amounts borrowed for acquisition of capital assets till such time as it is first put to use has to be capitalized was introduced into the Act by Finance Act 2003 with effect from 1st April, 2004. We are concerned with assessment year 1997-98 i.e. much before the proviso to Section 36(1)(iii) of the Act was introduced. Thus there was no prohibition to claiming of interest paid on funds borrowed for acquisition/purchase of capital asset till such time it is first put to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... windmill. (d) The Temporary approach Road is the one item on which Mr. Pinto states that no depreciation could be allowed. According to Mr. Dalal this claim has been allowed by the Tribunal as it would be necessary for setting up a windmill and would be included in the cost of the windmill. In fact the impugned order of the Tribunal recorded a finding of fact to the above effect. Further this Court on almost identical facts in CIT V/s. CTR Manufacturing Industries Ltd. (Income Tax Appeal No.2125 of 2013 rendered on 1st March, 2016) has dismissed the Revenue s Appeal from the order of the Tribunal allowing the claim for depreciation at the full rate on windmills. In the above view, the question as formulated does not give rise to any subs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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