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2023 (3) TMI 1104 - AT - Income TaxRectification application u/s 154 for allowing the enhanced claim of depreciation - claim of depreciation which has been wrongly claimed as per the provisions of Companies Act whereas the same have to be claimed as per the provisions of the Income Tax Act - As submitted that during the course of assessment proceedings, the assessee brought to the notice of the AO that while filing its return of income it had inadvertently and wrongly taken opening balance of WDV of fixed assets as per the Companies Act instead of Income Tax Act and the AO has not given effect to its bonafide error - HELD THAT:- As per the depreciation chart for A.Y. 2015-16, the closing WDV as on 31/03/2015 has been shown at Rs. 2,70,39,004/- and as per the depreciation chart for A.Y 2016-17, WDV on fixed assets as on 01/04/2015 has been taken at Rs. 2,20,00,290/- which clearly shows that there is some error which has crept in while taking the opening balance of WDV as on 01/04/2015 instead of the closing WDV for the previous year which by default will become the opening WDV for the year under consideration. None of the lower authorities have disputed the said factual matrix of the case in terms of both the computation of depreciation as per Income Tax Act and relates rules, and the quantum thereof so reflected in the tax returns of both the years and same being clearly a mistake which is apparent from the record and in respect of which there could not be any two opinions, being purely a factual matter which is clearly emerging from the record, we hereby direct the AO to take into consideration the opening balance of WDV and work out the claim of the depreciation and determine taxable income accordingly. Appeal of the assessee is allowed.
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