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2022 (2) TMI 1277 - AT - Income TaxDepreciation on Government's Grants - reduction of the amount of Capital Grants & Subsidies and Consumers' Contribution from the total cost of the Plant & Machinery for the purpose of allowing depreciation - HELD THAT:- Since the Ld. CIT(A) has followed the order of the Ld. CIT(A) in the case of the assessee for assessment year 2006-07 [2016 (12) TMI 946 - ITAT AHMEDABAD] while treating the entire capital subsidy grant and consumers contribution as capital in nature thus reducing the cost of capital asset and as a consequence the claim of depreciation thereon, and which issue has been restored back to the A.O. by the ITAT with the direction to determine the proportionate amount of grant relating to each asset, the said decision will apply to the present case also following which the issue in the present case also is restored back to the A.O. to be decided in accordance with the direction of the ITAT in assessment year 2006-07. Disallowance under the head small & low value items written off - HELD THAT:- In view of the same since identical issue stands adjudicated in favour of the assessee in assessment year 2006-07, the issue stands covered by the said order of the ITAT. Accordingly, the claim of the assessee to small and low value item written off is allowed. Disallowance of Miscellaneous losses and write offs - assessee pointed out that it had been submitted to the Ld. CIT(A) that the impugned losses and write off were on account of loss material through pilferage, shortage of material in transit, shortage arising on physical verification, obsolescence of materials, stores, loss in sale of scrap etc. - HELD THAT:- In view of the above since identical disallowance has been deleted by the ITAT in the case of sister concern of the assessee [2015 (6) TMI 1096 - ITAT AHMEDABAD], the decision in the said case would squarely apply in the present case also following which the impugned disallowances of write offs amounting is deleted.
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