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2022 (9) TMI 145 - AT - Income TaxDepreciation on Buildings - Adoption of WDV of the Building Block of Assets based on a valuation report prepared for a different purpose - HELD THAT:- As per the provisions of section 43(1)(6) WDV of an asset as per the books of accounts has to be arrived at only by adding to opening WDV assets acquired during the previous year and reducing the value of assets sold or discarded during the previous year and thereafter closing WDV has to be arrived at after providing for depreciation. Sec.32 of the Act mandates depreciation to be allowed as deduction on the WDV as understood under section 43(1)(6) of the Act. The AO therefore could not have tampered with the WDV of the Building Block of Assets based on a valuation report prepared for a different purpose. The addition is not warranted in the facts and circumstances of the case and hence, the same is directed to be deleted. Addition being unpaid service tax liability u/s 43-B - HELD THAT:- After hearing the rival submissions, we are of the view that the addition cannot be sustained. In CIT Vs Noble And Hewitt (I) (P) Ltd.. [2007 (9) TMI 238 - DELHI HIGH COURT] the assessee maintained a mercantile system of accounting and held in view of the provisions of Section 43B since the assessed had not claimed a deduction there was no question of disallowing the deduction which was not even claimed. The case of Boraiah Shivanajaiah [2022 (4) TMI 1015 - ITAT BANGALORE] the decision rendered in the case of M/s. Wyzmindz Solutions Private Ltd.[2020 (2) TM has I 80 - ITAT BANGALORE] was followed and it was held that if the assessee has received the service tax from its customers, then the amount has to be disallowed under section 43B, if not paid to the credit of the Government. The aspect that section 43B will apply only when a deduction is claimed by the assessee and not otherwise not been considered by the Bench in the aforesaid case. Hence, the decision of the Hon’ble Delhi High Court on this issue is being followed. Consequently, the disallowance made by the AO and sustained by CIT(A) is directed to be deleted. Appeal of assessee allowed.
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