9911796707
TMI Blog2014 (1) TMI 1850X X X X Extracts X X X X X X X X Extracts X X X X ..... d bank charges to the extent of such expenditure referred to the item of windmill eligible to 80% of depreciation and the same should be allowed in order to allocate ocean of such expenditure of 80% on eligible assets and others. The Assessing Officer was directed to consider the submissions of the assessee and thereafter allocate the cost and re-compute the depreciation accordingly. So far as other additional ground relating to allowability of MEDA charges, civil work, application charges, professional fees, and bank charges as revenue in nature allowable u/s.37 of I.T. Act, is concerned, the same was held to be disallowed to be admitted following the ratio of Hon’ble Supreme Court in the case of NTPC[1996 (12) TMI 7 - SUPREME COURT]. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the aforesaid grounds of appeal, or otherwise, may thus be granted. The Appellant craves leave to add, alter, vary, omit, substitute or amend the above grounds of appeal, at any time before or at, the time of hearing of the appeal, so as to enable the Hon'ble Tribunal to decide this appeal according to law. 2. The assessee is a public limited company engaged in the business of manufacture of on-Load Tap Changers, Radiators for transformers, Flange Type Tap Changers etc. The assessee had installed windmill during F.Y. 2006-07 relevant to A.Y. 2007-08. The appellant claimed accelerated depreciation @ in A.Y. 2007-08 on whole of windmills including related assets. The Assessing Officer only allowed this rate of depreciation of speci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n accordingly. Thus, on this ground, assessee succeeds. 12. Before us, the learned counsel for the assessee has raised an additional Grounds of Appeal which were hitherto not raised before the lower authorities. On the facts and in the circumstances of the case, 3. Ground 3 Without prejudice to the ground 1, the expenditure viz. MEDA charges, application charges, professional charges and bank charges amounting to ₹ 22,99,482/- being revenue in nature need to be allowed fully under section 37 of the Act if capitalization of these expenditures along with windmill is not accepted. 4. Ground 4 The appellant is entitled for additional depreciation of 20% under section 32(1)(iia) of the Act on the windmill acquired and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has a bearing on the determination of tax liability, we deem it fit and proper to admit such claim for adjudication, following the ratio of judgment of Hon ble supreme Court in the case of National thermal Power co. Ltd. (supra). Since such a claim was not open for verification before the lower authorities, we therefore, deem it fit and proper to restore the matter to the file of the Assessing Officer, who shall consider and allow the claim of assessee for additional depreciation u/s 32(1)(iia) of the Act on the cost of windmill as per law. Needless to say, the Assessing Officer shall give reasonable opportunity of being heard to the assessee. On this ground, assessee succeeds for statistical purposes. 16. In so far as the other additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting to allowability of MEDA charges, civil work, application charges, professional fees, and bank charges as revenue in nature allowable u/s.37 of I.T. Act, is concerned, the same was held to be disallowed to be admitted following the ratio of Hon ble Supreme Court in the case of NTPC. On this aspect also, the matter was remitted to the file of the Assessing Officer who has directed to consider the said additional ground raised by the assessee on its merits after providing the reasonable opportunity of hearing to the assessee. Thus, this alternative ground was allowed for statistical purposes. Facts being similar, so following the same reasoning, for A.Y. 2007-08, the matter is restored to the Assessing Officer with a similar direction on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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