Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (5) TMI 1312 - ITAT DELHIAddition of excess depreciation on aircraft - reopening of assessment - Held that:- We note that as per Entry no. III(3)(i) of Part-A of the Depreciation Table in Appendix-I, of the Income Tax Rules, 1962 the depreciation available on aircraft is @40%, hence, it was rightly held by the Ld. CIT(A) that the Assessee's claim was correct and AO should also understand that depreciation on aircraft cannot be equated with depreciation on motor vehicle. The depreciation is given on plant and machinery depending on its life and maintenance cost involved in such machinery. The depreciation is allowed by the government to give part of the profit to the businessman and he can make another plant and machinery at the end of the old machinery life to continue his business. Therefore, Ld. CIT(A) has rightly observed that the AO should understand the basic requirement of law and discuss the matter with his supervise officers before reopening the case. Hence, the addition of depreciation disallowance was rightly deleted by the Ld. CIT(A), which does not need any interference on our part, hence, we uphold the action of the Ld. CIT(A) on the issue in dispute - Decided against revenue
|