Depreciation on enhanced cost of asset is allowed from the date when the obligation to pay customs duty arose

Brief of the Case: In the of CIT Vs. Noida Medicare Centre Ltd,  Delhi High Court held that the AO erred in disallowing the capitalization of the additional customs duty in the manner claimed by the Assessee and adding the entire customs duty paid in the relevant AY to the income of the Assessee. Facts of the Case: The Assessee was a hospital and diagnostic centre. It earned income under the head ‘Business and Profession’. The Assessee imported hospital equipments valued at Rs. 2,75,11,988 during the years 1988-89 and 1992-93, without payment of custom duty, on the basis of a customs duty...