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2017 (5) TMI 431 - HC - Income TaxBenefit of Section 32 (1) (iii) - assets written off - claim of loss on account of writing off - Held that:- Section 32 (1) (iii) makes an express reference to “building, machinery, plant or furniture in respect of which depreciation is claimed and allowed under clause (i) and which is sold, discarded, demolished or destroyed in the previous year” Clearly, the only sub-clause (i) under which the deprecation could be claimed and allowed is second sub-clause (i) and not the first sub-clause (i). Provisions of clause (i) of sub- section (1) of section 32 do not apply in respect of the assets claimed to have become unusable and written off. See Commissioner of Income Tax v. Zoom Communication Pvt. Ltd. [2010 (5) TMI 34 - DELHI HIGH COURT] The Court is, therefore, unable to concur with the view taken by the ITAT, which, in turn, affirmed the view of the CIT(A) that the claim of the Assessee fell within the scope of Section 32 (1) (iii) of the Act. This is based on an erroneous reading of the provision as explained by this Court hereinbefore.Consequently, the question farmed is answered in the negative i.e. in favour of the Revenue and against the Assessee.
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