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TMI Blog2020 (2) TMI 841X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount of disallowance of depreciation of ₹ 20,58,80,087/- for acquiring the license of application software? Disallowance of interest expense - HELD THAT:- Tribunal has placed reliance on the decision of the Supreme Court in the case of CORE HEALTH CARE LTD. [ 2008 (2) TMI 8 - SUPREME COURT] has taken the view that the interest paid in respect of the borrowings for acquisition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ITA No.162/Ahd/2016 for the A.Y.2010-11. 2. The Revenue has proposed the following two questions of law for the consideration of this Court; (A) Whether the Appellate Tribunal has erred in law and on facts by upholding the decision of the CIT(A) in deleting the disallowance of depreciation of ₹ 20,58,80,087/-? (B) Whether the Appellate Tribunal has erred in law in deleting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 36(1)(iii) of the Act. Noticeably, the pre-amended proviso to section 36(1)(iii) applicable for the relevant assessment year in question (prior to its amendment by Finance Act, 2015) prohibited claim of interest on revenue account only where capital was borrowed for acquisition of an asset for extension of existing business or profession and therefore, so long as the capital borrowed resulted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id in respect of borrowings for acquisition of capital assets is an allowable deduction under S.36(1)(iii) of the Act regardless of the fact that the capital assets acquired were not put to use in the concerned Financial Year in question. In the light of position of law explained by the Hon'ble Supreme Court, we decline to interfere with the order of the CIT (A). Ground raised by the Revenue i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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