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2019 (3) TMI 1764 - ITAT MUMBAIDisallowance of depreciation u/s 32 - conversion of partnership firm into private limited company - assessee company computed the WDV in Its books of accounts after reducing the depreciation from the cost at which the assets were acquired by ft i.e. revalued prices as per section 43(1) - HELD THAT:- In the present case before us all the conditions of section 43(xiii) of the Act were satisfied in the succession of firm by the company in taking over all the assets and liabilities and therefore exemption as provided in section 43(xiii) is available to the assessee - assessee is entitled to depreciation on the price at which the assets were taken over if the conditions of section 47(xiii) of the Act were fulfilled. Since the issue has been decided by the ITAT in earlier year in assessee’s favour the disallowance of depreciation by the AO for this year is not sustainable as the same is consequential to the depreciation allowed and W.D.V of assets in earlier year. All the issues raised by the AO has been elaborately decided by the ITAT is assessee’s favour - Decided in favour of assessee.
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