YASHWANT VARMA, J.

1. The assessee as well as the Revenue seek to assail the correctness of the judgment dated 14 March 2018 rendered by the Income Tax Appellate Tribunal’ and in terms of which the two cross appeals of parties have come to be decided. We had in terms of our order of 23 January 2024 admitted these two appeals on the following questions of law:

“ ITA No. 660/2018

A. Whether on the facts and in the circumstances of the case and in law, the ITA T erred in upholding the disallowance of depreciation 1 Tribunal erified ITA 660/2018 Page 1 of 70

to the tune of Rs.5,10,79,752/- claimed on account of Asset Reconstruction Cost [“ARC’] being an ascertained liability, or alternatively allowing deduction for such expenditure in the year of execution of lease agreements or over the period of the lease?

B.Whether on the facts and in the circumstances of the case and in law, the ITAT erred in holding that installation of cell site towers amounted to ‘extension of existing business’ as stipulated in

proviso to Section 36(1)(iii) of the Income Tax Act, 1961 [“Act”] and, thereby warranting proportionate disallowance of interest under that provision?

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