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2018 (10) TMI 1428 - AT - Income TaxAddition on account of incorrect depreciation claimed - depreciation includes depreciation claimed on the Written Down Value of machinery and claimed on the WDV on the factory building - Held that:- As far as the contention of the assessee that the claim of depreciation is eligible in the income tax return even if the same has not been claimed in the books of accounts certainly has merits as the issue is squarely covered by the decision of Co-ordinate Bench in the case of Sudha Devi Oswal Vs JCIT Ratlam [2015 (11) TMI 1760 - ITAT INDORE] wherein similar facts held that depreciation on the building and Warehouse was not claimed in the balance sheet but the claim for depreciation was lodged by the assessee before the A.O during the assessment proceedings. Tribunal after examining the facts concluded that the warehouse building was in existence and was also used for business activities, therefore the assessee is entitled to depreciation. In the instant appeal the facts are quite similar as the depreciation on machinery and factory building have not been claimed in the balance sheet i.e. not debited to the Profit & Loss Account but while preparing the computation of income the depreciation of ₹ 26,82,229/- has been claimed. In the Tax Audit Report u/s 44AB of the Act, at the relevant column of Form 3CD. Auditor has given the details of depreciation calculated on the written down value of the machinery as well as factory building. There is no dispute at the end of Revenue about the WDV of Machinery and Factory Building. We are also satisfied that the impugned assets are being regularly used for business purposes. The assessee has rightly claimed the depreciation and Ld.CIT(A) made no error in allowing the claim of the assessee. - Decided against revenue.
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