https://www.taxtmi.com/caselaws?id=272032 The ITAT Chennai ruled on two issues against the revenue. First, regarding disallowance of interest on land acquisition loan, the tribunal held that since the land was immediately put to use for construction on the purchase date, the interest should be treated as allowable business expenditure rather than capitalized. The assessing officer was directed to delete the addition. Second, on software depreciation, the tribunal upheld the CIT(A)'s decision allowing 60% depreciation on computer software, confirming that software qualifies as plant under Income Tax Rules since April 2003, following the Amway India Enterprises precedent. en-us Wed, 20 Jan 2016 00:00:00 +0530 Sat, 11 Jan 2025 12:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=272032 The ITAT Chennai ruled on two issues against the revenue. First, regarding disallowance of interest on land acquisition loan, the tribunal held that since the land was immediately put to use for construction on the purchase date, the interest should be treated as allowable business expenditure rather than capitalized. The assessing officer was directed to delete the addition. Second, on software depreciation, the tribunal upheld the CIT(A)'s decision allowing 60% depreciation on computer software, confirming that software qualifies as plant under Income Tax Rules since April 2003, following the Amway India Enterprises precedent. Case-Laws Income Tax Wed, 20 Jan 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=272032