TMI Blog2014 (1) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... al ORDER Per N. K. Billaiya, AM: These two separate appeals by the assessee are directed against two separate orders of the Ld. CIT(A)-III, Mumbai pertaining to assessment years 2006-07 2007-08. As both these appeals involved identical issues, they were heard together and dispose off by this common order for the sake of convenience and brevity. 2. The sole grievance of the assessee in both these years relates to not allowing depreciation on the sole ground that the depreciation was shown in the statements of account of Universal Exports. 3. Briefly stated the facts of the case are that the assessee is a manufacturer of PP Woven Sacks Exporters of PP Woven Sacks. During the course of the scrutiny assessment proceedings, whil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ein the amount of depreciation of Rs. 51,80,558/- has already been considered. The AO was of the firm belief that since the depreciation has already been allowed in the hands of the proprietary concern, M/s. Universal Exports, the same cannot be considered once again in the hands of the assessee company and accordingly disallowed the claim of depreciation. 4. The assessee carried the matter before the Ld. CIT(A) but without any success. The Ld. CIT(A) observed that M/s. Universal Exports has declared a loss of Rs. 26,22,726/- and while computing the said loss, the depreciation of Rs. 51,80,558/- has already been taken into consideration, hence, the assessee is not entitled to claim the same depreciation second time again while computing i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erson can become proprietor/partner of any other concern. In the present case, the assessee became proprietor of M/s. Universal Exports but the undisputed facts remains that M/s. Universal Exports in itself is a distinct person assessable to income tax. The only claim of the assessee company is on the profit of the proprietary concern which is to be added to its net profit at the end of the year except for this the profit of the proprietary concern M/s. Universal Exports has to be determined and computed as per its own books of account, therefore, the Revenue authorities have very rightly allowed the depreciation in the hands of M/s. Universal Exports as the same is claimed and debited in the books of account of M/s. Universal Exports. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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