https://www.taxtmi.com/caselaws?id=761506 ITAT Mumbai dismissed revenue's appeal regarding depreciation disallowance on plant machinery where ECB was waived. AO reduced asset cost by waived ECB amount under Section 43(1) and 41(1), recalculating depreciation from AY 2009-10 to 2015-16. ITAT held that asset purchase and loan availing are separate transactions. Following SC precedents in Mahindra Mahindra and Tata Iron Steel, waiver of loan cannot affect asset cost as Section 43(1) doesn't apply when cost wasn't met by another person at purchase time. Asset cost remains the price paid by assessee regardless of loan repayment mode. en-us Fri, 25 Oct 2024 00:00:00 +0530 Tue, 12 Nov 2024 08:52:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761506 ITAT Mumbai dismissed revenue's appeal regarding depreciation disallowance on plant machinery where ECB was waived. AO reduced asset cost by waived ECB amount under Section 43(1) and 41(1), recalculating depreciation from AY 2009-10 to 2015-16. ITAT held that asset purchase and loan availing are separate transactions. Following SC precedents in Mahindra Mahindra and Tata Iron Steel, waiver of loan cannot affect asset cost as Section 43(1) doesn't apply when cost wasn't met by another person at purchase time. Asset cost remains the price paid by assessee regardless of loan repayment mode. Case-Laws Income Tax Fri, 25 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761506