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2022 (2) TMI 432 - ITAT BANGALOREDepreciation claim on expenditure incurred for construction of model house, project office, marketing office, stores etc - According to the assessee, for the purpose of its business, these structures were put up and were destroyed/dismantled once the project was completed and the structure did not have life for more than three years and were temporary in nature and hence, entitled to 100% depreciation - HELD THAT:- The assessee has filed additional evidence in the form of a certificate of the Architect which clearly states that the expenditure incurred on construction amounting to ₹ 1,75,55,286 are temporary structures such as model house, project office, marketing office, storage of building material, etc. It is further stated in the Architect's letter that these were demolished immediately after the completion of the project. In the petition for admission for additional evidence, the assessee states that the assessee was under the bona fide belief that its explanation, ledger extracts and submissions would be sufficient to allow the claim. It was stated that for interest of justice and equity since the additional evidence goes to the root of the issue, the same may be admitted on record. We find that the additional evidence now sought to be admitted goes to the root of the issue. Therefore, for substantial cause and justice, we admit the same on record. The assessee has now claimed before the Tribunal that the expenditure incurred is revenue expenditure. Alternatively, it is submitted that the expenditure incurred is for putting up temporary structures and entitled to 100% depreciation. In the interest of justice and equity since the additional evidence has been admitted on record, it is necessary that the issue now raised before the Tribunal needs to be examined afresh by the A.O. Appeal filed by the assessee is allowed for statistical purposes.
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