Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (11) TMI 159 - AT - Income TaxDepreciation on electrical installation - excess claim - CIT (A) allowed the claim - Held that:- The items on which the assessee has claimed depreciation at 25% have been attached to plant and machinery and not building and therefore it formed part of plant and machinery, thus depreciation @ 15% will not be applicable. Further, in earlier years depreciation has been allowed at 25% to the assessee & could not controvert these facts, thus no reason to interfere to the order of CIT (A) - against revenue. Cessation of liability - Addition u/s.41(1) - CIT(A) deleted the addition - Held that:- As decided in CIT vs. Nitin Garg [2012 (5) TMI 30 - GUJARAT HIGH COURT] the assessee had continued to show the amounts as liabilities in its balance sheet the same cannot be treated as cessation of liabilities and merely because the liabilities are outstanding for last many years, it cannot be inferred that the said liabilities have ceased to exist - in the present case also the assessee has made payments in subsequent years and in cases where the amounts are still outstanding, the provisions of section 41(1) cannot be applied. The assessee acknowledges its liability to pay. The Revenue has not been in a position to controvert the findings of CIT (A). Further the Revenue has not brought anything on record to prove the creditors to be non existent or the creditors appearing in Balance Sheet to be of bogus in nature - in favour of assessee.
|