Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (4) TMI 672 - AT - Income TaxRevision u/s 263 - different block of assets for the plant and machinery is viz-a-viz. motor cars as per appendix-I under the heading III of the depreciation schedule - Pr. CIT was of the view that the motor cars purchased by the assessee cannot form part of the block of assets under the category of plant and machinery. But the assessee in the revised computation of income has shown both the assets under the same category which was also accepted by the AO - HELD THAT:- Admittedly there are 2 different block of assets as specified in the depreciation schedule but both the assets carry the same rate of depreciation i.e. 15%. There is no ambiguity to the fact that motor cars and the plant & machinery being eligible for depreciation at the same rate has to be classified under same block of assets despite there were different entries in the depreciation schedule. It was also pointed out that the assessee is not carrying on any business activity. Indeed the manufacturing activity of the assessee was closed down but the assessee changed its object clause which can be verified from the memorandum of association. As such the assessee got inserted new objects in the main object clause of memorandum of association by passing special resolution dated 13th November 2013. We also note that the assessee has declared interest income as business income which was also accepted by the revenue. This interest income of ₹ 85,30,962/- was declared in the year under consideration. It seems that the assessee was carrying on the business activities and therefore the depreciation claimed by the assessee on the cars cannot be disallowed on the ground that there was no business activity carried out by the assessee in the year under consideration. AO during the assessment proceedings have carried out necessary verification after applying his mind. Thereafter he has taken a conscious decision by accepting the income declared by the assessee in the revised return of income. Once the AO has taken a view after necessary verification then the learned Pr. CIT cannot substitute the view taken by the AO by his own view on the ground of non-verification. We hold that there is no infirmity in the order of the AO which requires to be revised by the learned Pr. CIT under section 263 of the Act. Accordingly the order of the learned Pr. CIT is based on wrong assumption of facts. Consequently we quash the same. Hence the ground of appeal of the assessee is allowed.
|