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2023 (7) TMI 983 - ITAT RAIPURImpairment loss - Loss claimed on disposal of fixed assets - said loss was calculated as prescribed in Accounting Standard AS-10 issued by the ICAI and accounting policy being consistently adopted by the assessee company - contention of the Revenue that the same is not allowable as per the provisions of section 41(2) - HELD THAT:- Since the assessee itself has accepted that the claim of impairment loss on disposal of fixed assets which was calculated and accounted for according to the guidelines prescribed under the Companies Act, which are not binding while calculating the taxable income of the assessee under the provisions of the Income Tax Act, therefore, the observations of CIT(A), which are not factually correct that the entire block of asset has exhausted, is an erroneous finding not in concurrence with the actual facts of the case, wherein as per computation of total Income by the assessee the block is showing as in existence, is liable to be quashed. Consequently, the addition made by the AO stands confirmed. Since we are approving the findings of learned AO regarding disallowing the claim of the assessee for impairment loss, in the interest of justice, the entitlement of depreciation which should have been allowed to the assessee according to the provisions of section 32 of the Income Tax Act, is hereby directed to be allowed. Appeal of the Revenue is partly allowed for statistical purposes.
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