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2021 (4) TMI 274 - HC - Income TaxDepreciation on franchisee cost - whether the depreciation has to be allowed on the entire bid amount of ₹ 3,36,00,000/- or only on the amount of installment paid during the relevant year? - Tribunal held that the depreciation under Section 32(1)(ii) has to be allowed on the entire cost of franchise rights as against franchise fee installment paid during the particular year applicable to tax? - HELD THAT:- The Tribunal has neither taken note of relevant statutory provisions nor has assigned any reasons as to how the order of Chennai Bench of the Tribunal M/S THE INDIA CEMENTS LTD [2016 (1) TMI 1028 - ITAT CHENNAI] is applicable to the instant case. The order passed by the Tribunal is bereft of any reasonings and suffers from the vice of non application of mind. The Tribunal which is a final fact finding authority has to assign reasons in support of its decision. The impugned order therefore is cryptic and cannot be sustained in the eye of law. The same is therefore quashed and the matter is remitted to the Tribunal for afresh consideration of matter on merits by a speaking order in the light of relevant statutory provisions expeditiously.
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