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2012 (2) TMI 386 - DELHI HIGH COURTDepreciation on hotel building given on lease – non-disclosure of licence fees as income after A.Y. 1995-96 by assessee on ground of dispute between assessee and ITC Ltd – settlement agreement executed - A.O. made addition on accrual basis and allowed depreciation – search conducted in 2007 – A.O. disallowed depreciation on ground that hotel building was not being used for business – Held that:- CIT(A) deleted dis-allowance of depreciation on ground that for claiming the depreciation it is not necessary to use the asset by the assessee directly. The appellant's ownership over the asset on which depreciation is claimed is not under dispute and user of these assets in business is also not under dispute. Tribunal has also recorded that licence fee receivable should be included as "business income" and accordingly, depreciation on hotel building is to be allowed. Aforesaid is upheld – Decided against the Revenue.
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