Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (10) TMI 158 - AT - Income TaxAllowance of depreciation - rectification of mistake - whether Ld.CIT(A) is justified in granting relief to the assessee by allowing the depreciation without appreciating that the issue involved is debatable in nature and therefore cannot be considered in the proceedings u/s.154 of the IT Act? - Held that:- We note that the impugned order has been passed by the CIT (Appeals) in the appeal filed on 27.1.2010 against the assessment order dt.23.12.2009. Therefore proceedings before the CIT (Appeals) were against the assessment order and not against the rectification order passed under Section 154 of the Act however, the CIT (Appeals) has considered the claim of the assessee which was raised in the rectification petition filed under Section 154. Without going into the issue of the scope of section 154 of the Act, we are of the view that when the CIT (Appeals) has the jurisdiction to entertain the said claim raised by the assessee in the petition under Section 154 in the appellate proceedings against the assessment order then the issue can be looked into only from the angle of the allowability of the claim on merits. We find that both these claims were covered by the various decisions of Hon'ble High Courts including the Hon'ble jurisdictional High Court and therefore there was no error or illegality in the order of the CIT (Appeals) in entertaining such claims of the assessee which are covered by binding precedence As it is clear from the findings of the CIT (Appeals) that both the claims of the earlier year expenditure adjusted against the current year’s income as well as depreciation on fixed assets are covered by the decision of the Hon'ble jurisdictional High Court as well as the decision of this Tribunal. Accordingly, in view of the facts and circumstances of the case when the CIT (Appeals) has entertained and allowed the claims of the assessee in the appeal filed against the assessment order then the issue of scope of section 154 becomes irrelevant and academic in nature. Hence we do not find any reason to interfere with the impugned order of the CIT (Appeals). - Decided against revenue
|