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2014 (1) TMI 126 - AT - Income TaxAllowance of 100% depreciation of temporary shed – Held that:- A temporary structure constructed for the purpose of carrying out a massive construction project is eligible for depreciation at 100% in view of Item I(4) of Part A of New Appendix I of the Income-tax Rules, 1962 - temporary erection which was intended to use for temporary purpose is entitled for 100% depreciation - The department is not correct in saying that the wooden structure alone is entitled for 100% depreciation - If that is the intention of the rule making authority, then the structure made of teak wood and rose wood which would last for several hundred years has to be allowed depreciation at 100% - this is not the intention of the rule making authority - If the structure is for temporary purpose, then the assessee is entitled for depreciation @100% - the structure constructed by G.I. pipes, etc. is only for the purpose of temporary use so as to facilitate the carrying out of massive construction activity - the assessee is entitled for 100% depreciation - the assessee has claimed only 50% of the total expenditure since the structure was used for less than 180 days - The CIT(A), after taking note of the fact has allowed only 50% of the expenditure as depreciation – There was no infirmity in the order – Decided against Revenue. Additional Depreciation u/s 32(1)(iia) of the Act – Held that:- Following Apollo Tyres Ltd. Versus The ACIT., Range 1, Kochi [ 2014 (1) TMI 33 - ITAT COCHIN] - the assessee is entitled for additional depreciation of 10% in the subsequent assessment year - The balance 50% of the depreciation has to be allowed in the subsequent year, therefore, the orders of the lower authorities set side and the assessing officer is directed to allow the claim of balance 50% additional depreciation in the year under consideration – Thus, the assessee is entitled for additional depreciation of 10% in the year under consideration – Decided against Revenue.
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