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2021 (12) TMI 138 - ITAT GUWAHATIAddition of the depreciation from contract income and Tripper income - claim not made by the assessee in his return of income since assessee had shown his income under the presumptive taxation u/s. 44AD and 44AE - CIT(A) had confirmed the depreciation added by the AO by stating that since the assessee had adopted contract income u/s. 44AD and tipper income u/s. 44AE of the Act, the assessee was not eligible to claim depreciation - HELD THAT:- As assessee has not made any claim of depreciation as alleged by the AO as well as by the Ld. CIT(A). A perusal of the paper book page 13 from where computation of total income is placed it is discerned that the assessee has not claimed any depreciation on the leathe machinery and for the two tipper lorries. As noted that the assessee in his balance sheet placed at page 14 of the paper book has reflected the depreciation on these two items, however the assessee has not claimed the depreciation while computing tax in his return since he had adopted contract income u/s. 44AD and tipper income u/s. 44AE of the Act. However, the AO erroneously without application of mind has assumed that assessee has claimed depreciation which fact has not been examined properly by the Ld. CIT(A) while passing the impugned order. Ergo, the order of the Ld. CIT(A) is set aside and the depreciation added by the AO/Ld. CIT(A) is directed to be deleted. - Decided in favour of assessee.
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