Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (10) TMI 611 - ITAT AHMEDABADDepreciation on expenditure incurred towards obtaining Right of Way (ROW) - Reopening of assessment u/s 147 - depreciation on capitalized expenses incurred in acquiring the Right of use, crop compensation & Right of way for laying on pipeline - Held that:- It is not a case of “change of opinion” on the part of the A.O. as he has not specifically applied his mind during the original assessment proceedings on the depreciation claimed by the assessee. - reopening held as valid. Crop compensation is payable only to those land owners on whose land there was any standing crop or standing trees. In the process of laying down the pipeline by using the land acquired by the assessee, the crop and trees standing on such land get destroyed and hence, the assessee was required to compensate the land owner in respect of such crop or trees standing on the land in addition to the land compensation. Thus the compensation for such damage to the land owner cannot be added to the cost of land because even after acquiring land, the assessee could have waited till the crop was harvested by the land owner or by the assessee and in that situation, no compensation would have been required to be paid because there would have been no loss or damage to the crop or the assessee could have realized back by selling the crop but it would have resulted in delay of the project and to avoid this, assessee agreed to pay compensation for damage to the crop etc. hence, such compensation should be added to the cost of pipeline and not to the cost of land. No infirmity in the order of CIT(A) on this aspect. The grounds taken by the Revenue in respect of deletion of disallowance on depreciation claimed on crop compensation is dismissed and the ground in respect of deletion of disallowance of depreciation claim on Right of Way (ROW) other than security and cost of crop is allowed.
|