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2017 (10) TMI 226 - ITAT DELHIAllowing only 50% of the depreciation - CIT(A) noted that since the business of the assessee was finally stopped in September, 2011, so depreciation is allowable only for half of the year - assessee become partner in some other concern though for the same activities - Held that:- It is an admitted fact that assessee is a Company and stopped its business activities on 20th September, 2011 when the assessee entered into the Limited Liability Partnership Agreement (LLP) with many parties and agreed to form the LLP in the name and style of “IILM Enterprise, LLP”, business would be carried out in the name of the new LLP. It was, therefore, proved that assessee company discontinued its business permanently and through the execution of LLP agreement dated 20th September, 2011, the assessee company has become partner in the new LLP. Therefore, the Ld. CIT(A) was justified in holding that the activities of the assessee were finally stopped in September, 2011 when the assessee become partner in some other concern though for the same activities. Therefore, the expenditure were rightly allowed in the case of the assessee company till the closure of the business i.e., September, 2011. The depreciation was also therefore, correctly allowed for half of the year i.e., up-to September, 2011 when business of the assessee company was completely stopped. Merely new LLP has started doing the same activity would not give any right to the assessee to claim depreciation for whole of the year because assessee completely stopped its business activities as a Company in September, 2011. - Decided against assessee.
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