Tribunal upholds CIT(A) order for assessee, allowing depreciation on road, debenture expenses with relief.

The Tribunal upheld the CIT(A) order in favor of the assessee, allowing depreciation on road and tolled road, debenture issue expenses, and providing consequential relief under Section 234 B & C. The decisions were based on legal precedents and agreements with the Government, ensuring a fair outcome for the parties involved.

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Issues involved: Appeals by department and assessee against CIT(A) order for assessment year 2008-09; deletion of interest income and depreciation on road; depreciation on tolled road; disallowance of debenture issue expenses; charging interest under Section 234 B & C.

Analysis:
1. Deletion of interest income and depreciation on road:
- Appeals by department and assessee against CIT(A) order.
- Tribunal found issues covered in favor of assessee by Tribunal's own case for assessment year 2007-08.
- Interest income treated as income from other sources based on precedents and business commencement.
- Depreciation on road allowed based on precedents and essentiality in business.
- Tribunal confirmed CIT(A) order, rejecting department's grounds.

2. Depreciation on tolled road:
- Assessee's appeal challenged non-allowance of depreciation on tolled road.
- Tribunal allowed depreciation following precedents and agreement with the Government.
- Tribunal directed AO to treat toll road as plant and machinery for depreciation.
- Tribunal considered and dismissed department's arguments, following previous decisions.

3. Disallowance of debenture issue expenses:
- Assessee appealed against disallowance of debenture issue expenses.
- AO and CIT(A) disallowed expenses as capital in nature.
- Assessee argued expenses were revenue in nature based on Supreme Court decision.
- Tribunal allowed expenses as revenue deduction, following Supreme Court precedent.

4. Charging interest under Section 234 B & C:
- Tribunal directed AO to give consequential relief to assessee under Section 234 B & C.
- Appeal of department dismissed, appeal of assessee allowed.

In conclusion, the Tribunal upheld the CIT(A) order in favor of the assessee, allowing depreciation on road and tolled road, debenture issue expenses, and providing consequential relief under Section 234 B & C. The decisions were based on legal precedents and agreements with the Government, ensuring a fair outcome for the parties involved.

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