Windston Springs Private Limited Vs. Dy. Commissioner Of Income Tax-8(3)(2)

Parties Involved

Facts Summary

The assessee, Windston Springs Private Limited, is a private limited company engaged in the business of manufacturing and sale of industrial disc springs, valve plates, etc. For the assessment year 2014-15, the assessee sold a residential building for Rs. 49,20,000 and constructed a new residential building at Bhuj for Rs. 41,67,746. The Assessing Officer held that the block of residential buildings had ceased to exist and computed short-term capital gain. The assessee claimed that the new building was completed before 31.03.2014 and should be included in the block of assets. For the assessment year 2015-16, the Assessing Officer disallowed certain expenses under section 14A, which the assessee contested.…

Legal Issues

• 1. Whether the block of residential buildings had ceased to exist upon the sale of the old building.
• 2. Whether the assessee is entitled to depreciation on the new building.
• 3. Whether the disallowance of interest on borrowed funds for construction is justified.
• 4. Whether the disallowance under section 14A for the assessment year 2015-16 is valid.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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