Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (5) TMI 789 - AT - Income TaxDisallowance of depreciation in respect of Effluent Treatment Plant (E.T.P) - date of installation and put to use for the first time - Held that:- There is nothing on record which could positively establish the use of the ETP from 01.10.2005, as in the form of commissioning report; ETP power consumption (which is separately metered); consumption of chemicals for use in ETP, et. as. The EAR contains specific reference to the ETP records. The EAR is also silent in this regard, being, as afore-noted, only for the period January 2007 onwards. We are, at the same time, conscious that there has been no verification qua this aspect of the matter by the Revenue, who has proceeded by accepting the assessee’s claim. The assessee, therefore, has not got an opportunity to properly represent its case in the matter. We, accordingly, restrain from issuing any final finding in the matter, and consider it only proper to restore this aspect of the matter back to the file of the A.O. The assessing authority, where not satisfied with the assessee’s explanation, or if the assessee itself concedes not to press this aspect, shall, in giving effect to this order, allow deprecation at 50% of the cost for the current and the following year in-as-much as we have confirmed it to be eligible for deprecation @ 100%. This, it would be appreciated, is even otherwise incumbent on him in-as-much as he has to, while allowing additional depreciation for the current and/or the following year, withdraw the depreciation for the subsequent years; the issue at hand concerning the rate of depreciation, so that the issue in essence involves timing difference.
|