When the directors of the company have admitted that the installed capacity has not been enhanced, the same cannot be contradicted by a report of the CA to claim additional depreciation, as held by AhdTrib in Anjani Synthetics Ltd v Dy CIT — In favour of: The assessee (partly).
Depreciation under s 32(1)(iia) — Increase in installed capacity by 10% is sine qua non for claiming depreciation under s 32(1)(iia).
Disallowance under s 14A — No proportionate disallowance of interest can be made in absence of any nexus between the borrowed funds and the amount invested in the shares of other companies.
Decided on: 25 February 2011.
No comments:
Post a Comment