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2020 (5) TMI 374 - AT - Income TaxCondonation of delay - delay of 368 (Three Six Eight) days - HELD THAT:- Decisions of the Hon'ble Supreme Court in the case of Collector, Land Acquisition Vs. Mst.Katiji & Ors [1987 (2) TMI 61 - SUPREME COURT] and the decision in the case of CIT Vs. K.S.P.Shanmugavel Nadar [1984 (4) TMI 24 - MADRAS HIGH COURT] we find that the assessee is not benefitting in any way by not filing the appeal in time before the Tribunal. The assessee has explained the reasons as misplacement of papers by one of the office staff. This is one of the possible reasons for not being able to file the appeal within the time. Further, after hearing the assessee on merits also, we find that the assessee has an arguable case on merits. Hence, we are inclined to condone the delay of 368 (Three Six Eight) days and proceed to dispose-of the appeal on merits. Value of assets for the purpose of calculation of depreciation - total value of the assets, namely 'Plant and Machinery' sold during the year was only and the Appellant itself deleted this value from block of assets, for the purpose of calculation of depreciation - HELD THAT:- We find that the Hon'ble High Court of Bombay in the case of CIT Vs. Parle Soft Drinks (Bangalore (P) Ltd) [2017 (11) TMI 1311 - BOMBAY HIGH COURT] has held that the sale proceeds of soft drink bottles being capital assets, could not be held to be a revenue receipt and after sale of old bottles, block of assets had to be reduced by amount of whole proceeds and accordingly, whatever was there in block of assets, depreciation had to be allowed in accordance with the provisions of law. It is clear that u/s.43(6) of the Act, the WDV of the block of assets is to be reduced by the sale proceeds received on sale of one or more of the assets from the block and not the entire WDV of the said asset. Therefore, we direct the AO to reduce only the sale proceeds only from the WDV of the block of the assets and allow the depreciation on the balance of the WDV. Appeal of assessee is allowed.
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