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2015 (10) TMI 1424 - AT - Income TaxDepreciation of school building, labour huts, store building etc. - Held that:- The assessee constructed/completed a big project of Rajasthan Housing Board. As per the agreement the assessee was to construct certain assets/buildings like school, labour huts at the site to stay for labour and store building to keep the material at site, site office building etc. The same were handed over to the Rajasthan Government. The assessee written of the assets by claiming 100% of depreciation. There is no dispute that the assessee incurred expenses on such construction like site office building, labour huts and store building which were lateron handed over to the Rajasthan Housing Board. These were part and partial of the project, thus, the construction expenses has to be allowed as revenue expenditure. The assessee preferred to do in two installment by claiming 50% depreciation in two different assessment year when the project was in existence. In view of these facts, we affirm the stand of the ld. Commissioner of Income Tax (Appeals) on this issue in granting relief with respect to claim of depreciation, thus, the appeal of the Revenue is having no merit. Addition made on accrued interest on fixed deposit - AO disallowed a sum on the ground that the accrued interest on F.Ds was not accounted for in the books of accounts by the assessee - Held that:- If the observation made in the assessment order, leading to addition made to the total income, conclusion drawn in the impugned order, material available on record, assertions made by the ld. respective counsels, if kept in juxtaposition and analyzed, we find that the assessee is a partnership firm carrying on the business of civil construction broadly with the Government and Semi Government Organisations. We find that the bank directly credited the interest on F.Ds and due to non-communication to the assessee at the relevant time, could not be shown, however, the F.Ds matured in the assessment year 2010-11 and the Bank along with interest credited the income for which the assessee declared the same in his profit & loss account on maturity and offered the income on such interest in the assessment year 2010-11. There is no loss to the Revenue since the interest was offered as income. Thus, this appeal of the assessee is allowed and the addition so made is deleted. - Decided in favour of assessee.
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