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Tuesday, 13 March 2012

Depreciation on regularisation fee of hospital building held deductible

Dr. K. Senthilnathan FEBRUARY 15, 2012 [2012] 19 taxmann.com 135 (Chennai - Trib.) (TM)

Regularization fees paid by assessee to CDMA under Tamil Nadu Town and Country Planning Act for condoning violations during construction of hospital building has a direct nexus to construction of hospital building; therefore, only account to which regularization fees paid could be booked is construction account of hospital building; amount of regularization fee paid by assessee cannot be excluded in computing eligible depreciation allowance 

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