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2019 (6) TMI 1208 - AT - Income TaxDisallowance of depreciation on galas as given on rent - assessee earned rental income by letting out certain office premises against which statutory deduction allowed u/s 24 - HELD THAT:- The assessee has earned rental income from certain office premises which forms part of the block of assets. The rental income from these premises has been assessed under the head Income from House Property against which statutory deduction u/s 24 has already been allowed to the assessee. The assessee is not disputing the disallowance of office maintenance charges claimed against the premises as business expenditure but disputing the claim of depreciation against office premises. The perusal of block of asset reveal that the assessee is in possession of various Galas, 12 to be precise, out of which few galas have been let out during the year and few galas have been used by the assessee for its own use. The depreciation on galas used for the business purposes is not under dispute. However, depreciation on galas as given on rent amount to ₹ 4.34 Lacs which have been disallowed by Ld. AO. Against the rental income, the assessee has already been allowed statutory deduction u/s 24 and this depreciation is being claimed as business expenditure over and above the statutory deduction which has been allowed u/s 24. The primary condition as envisaged by Section 32 to claim the depreciation is that the assets should be used for the purposes of assessee’s business which has remained unfulfilled for galas given on rent. Therefore, we are unable to concur with the stand of Ld. AR, in this regard. - Decided against assessee.
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