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2018 (7) TMI 2095 - HC - Income TaxDisallowance of depreciation u/s 32- factory of the assessee is closed, and therefore, the assessee is not using the assets for which the depreciation was claimed, and therefore, the assessee shall not be entitled to the depreciation under Section 32 - HELD THAT:- Considering the fact that the assessee was in business however could not run the factory in the year under consideration because of the stay order granted by the Court and even otherwise, the business of the assessee was continued, and therefore, the learned Tribunal allowed the claim of the assessee of depreciation under Section 32 by observing that it cannot be said that the assessee stopped /closed the business, we are in complete agreement with the view taken by the learned Tribunal. Addition u/s 41(1) of cessation of liability - HELD THAT:- Squarely covered against the revenue in view of the decision of the Hon'ble Supreme Court in the case of Commissioner v. Mahindra & Mahindra Ltd. [2018 (5) TMI 358 - SUPREME COURT] The factual matrix, which came to be considered by the learned Tribunal is that the Tribunal while deleting the addition made under Section 41(1) on account of cessation of the liability, namely, the assessee had not written off the liability in the books of accounts, and therefore, the liability with respect to debtors is not ceased is concerned, considering the aforesaid factual matrix and when in the books of accounts the assessee carried forward and continued the liability and has not written off, no error has been committed by the learned Tribunal in deleting the addition made by the learned Assessing Officer under Section 41(1) on account of cessation of liability.
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