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2020 (1) TMI 1367 - AT - Income TaxRevision u/s 263 - additional depreciation is claimed on the whole of the new assets added during the year except on used items purchased - CIT was of the view that the AO failed to verify the genuineness of the claim as the deduction is over and above the normal depreciation allowed with specific intention by the legislature - AO by not verifying the claim and without establishing that the new assets are plant and machinery used for manufacturing activity and not general purpose assets used for office purpose, has erred in allowing the claim in total - HELD THAT:- This Tribunal in assessee’s own case has taken the view that to claim additional depreciation, the assessee should be engaged in manufacturing activity and that it is not necessary that the assets on which additional depreciation is claimed should be used in the manufacturing activity. Therefore, we modify the directions contained in the impugned order of the CIT whereby he has directed the AO to examine the purpose for which the assets on which additional depreciation is claimed is used in the manufacturing activity as not the requirement of the law. With this modification of the impugned order, we partly allow the appeal of the assessee.
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