Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (5) TMI 467 - AT - Income TaxDisallowance of assets written off – depreciation has been claimed on those assets in the past - The auditors categorized the amount under the head “assets written off” and classified it under capital nature – Held that:- CIT(A) was of the view that the schedule of fixed assets annexed with the B/sheet that the assets which has been written off are depreciable assets and depreciation has been claimed on those assets in the past and allowed and the amount of deficiency/ difference is written off in the books of accounts by the assessee company during the year under question which is clearly allowable u/s 32(ii)/[iii] of the Act – AO has not doubted the fact that assessee had to vacate the premises due to expiry of lease and closure of business - premises were to be vacated, the question of any portion of block of assets remaining with the assessee does not arise - the disallowance has been made after accepting the loss but on the ground that the claim of the assessee is capital in nature, therefore what is to be decided is whether the CIT(A) was correct in holding that the amount was allowable to the assessee in view of the clear provisions of sec. 32(1)(ii)/(iii). There was no infirmity in the order of CIT(A) - the claim of the assessee clearly falls within the scope of sec. 32(1)(iii) - The part of the amount realized by the assessee has been offered to tax - The balance of the amount pertaining to the block had no realizable value, has not been disputed by the assessing officer - The difference is allowable u/s 32(1)(iii) – AO has not doubted the genuineness of the claim and disallowed it only holding the loss to be capital in nature - part of the sale proceeds have been accepted and there is no allegation that the assessee’s business was not conducted in this year – the order of the CIT(A) upheld – Decided against Revenue.
|