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2014 (2) TMI 656 - AT - Income TaxDisallowance of depreciation - Erroneous and insufficient grounds – Held that:- The decision of the CIT(A) upheld that depreciation is allowed in respect of building and not on land because building is a wasting asset, whereas land is a permanent asset - where it is possible to reasonably allocate the cost of acquisition between that of building and of land, the depreciation should be allowed only after making such allocation, on the value of the building so determined - Relying upon Commissioner of Income-Tax, Punjab, Jammu And Kashmir And Himachal Pradesh Versus Alps Theatre [1967 (3) TMI 6 - SUPREME Court] building, for the purpose of depreciation, means only the superstructure constructed on the land and does not include land - the action of the AO in allocating the cost of acquisition of the immovable property between that of land and the superstructure and allowing depreciation only in respect of the cost of the superstructure is rightly upheld –Decided against Assessee. Disallowance of salary paid to employees – Held that:- The findings of the CIT(A) upheld that no explanation has been furnished as to why the vouchers even for the one month were not signed by the three employees - The assessee had obviously employed more persons than the aforesaid three employees and the other employees could have carried out the work stated to be done by these three employees - There is nothing on record to show that vouchers for only one month were examined by the AO – assessee was not able to produce any evidence to show that salary was paid to these three persons – thus, the disallowance righty upheld – Decided against Assessee.
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