The ITAT held that: The department cannot challenge the validity of the sanctioned scheme at the...

The ITAT held that: The department cannot challenge the validity of the sanctioned scheme at the implementation stage as the scheme attains statutory force binding on all stakeholders, including the department. The assessee is entitled to claim depreciation on passive infrastructure assets transferred under the scheme at Rs.1344,19,48,510. Recognition of assets at fair value pursuant to the scheme does not amount to revaluation, allowing depreciation claim under normal and MAT provisions. Expenditures like abandoned project costs, site restoration provision, service level adjustment provision, and interest on borrowings were held allowable as business expenditure or ascertained liability. Enhanced 80% depreciation was allowed on energy savi..... .....

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