TMI Blog2012 (11) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... possession of soft-wares which he had sold during the year. There is nothing to establish that the assessee had not used the building and furniture during the previous year. Such inference cannot be made due to absence of electricity expenditure. It is evident from the profit & loss account of the assessee that the assessee had incurred expenditure such as office maintenance expenditure which clearly establishes that the office of the assessee was in operation, thus it can be fairly concluded that the assessee was in continuance of its business during the relevant previous year and, therefore, it is entitled to claim the depreciation - in favour of assessee - ITA No. 1222/Ahd/2010 - - - Dated:- 19-10-2012 - SHRI G. C. GUPTA, AND SHRI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsideration, the learned AO required the assessee to substantiate allowability of its claim of depreciation. In response thereto, it was submitted that during the accounting year 2005-06 the assessee achieved turnover of Rs.4,06,214/- from sale of software developed by it and that since the assessee was continuing in using its infrastructure, the assessee is entitled for depreciation on the assets. The learned AO considering the assessee s contention disallowed the claim of depreciation by invoking the provisions of section 32 and 28(i) of the Act since the assessee did not fulfill the conditions laid down under these sections and made addition of Rs.3,23,251/- to the total income of the assessee. 4. The assessee carried the matter befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I am of the view that the assessing officer is justified in making disallowance on this count. The addition made by the A.O. of Rs.3,23,251/- is confirmed. This ground of appeal is dismissed. 6. The learned AR reiterated his submissions made before the authorities and prayed that the order of the learned CIT(A) may be set aside and its claim of depreciation may be allowed. 7. The learned DR relied on the orders of the authorities below and submitted that during the year under consideration the assessee had no business activity during the previous year and had not used any of its assets for the purpose of its business for earning any income or profit. Hence, the assessee is not entitled for claim of depreciation. He, prayed that the or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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