TMI Blog2014 (5) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... ne method and written down value method are recognized - once the amount of depreciation actually debited to the profit and loss account was certified by the auditor, it was not permissible for the AO to make book adjustment - depreciation actually debited to the profit and loss account was certified by the auditors - it is not permissible for the AO to make book adjustments – the AO is directed to delete the addition on account of adjustments made u/s 115JB of the Act – Decided in favour of Assessee. - ITA No. 7178/Mum/2011 - - - Dated:- 30-4-2014 - Shri I. P. Bansal And Shri N. K. Billaiya, AM,JJ. For the Appellant : Dr. K. Shivaram Ms. Neelam C. Jadhav For the Respondent : Shri M. L. Perumal ORDER Per N. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has claimed higher depreciation @3.34% as against 1.63% prescribed in Schedule XIV of the Companies Act, 1956. According to the AO as the book profit taxable u/s. 115JB had escaped assessment, assessment was re-opened u/s. 147 of the Act and notice u/s. 148 was issued and served upon the assessee. In response to this, the assessee stated that return filed on 28.10.2003 may be treated as return filed in response to the notice u/s. 148. 5. Thereafter, the assessee was asked to explain the claim of depreciation viz-aviz provisions of section 115JB of the Act. According to the AO the assessee did not respond to the queries raised during the proceedings. The AO was of the firm belief that as per the Companies Act normal depreciation ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. 7. We have carefully perused the orders of the lower authorities. We have also considered the decisions relied upon by the counsel. It is an admitted fact that the assessee has changed the method of depreciation from straight line method to written down value method. Deprecation has been calculated in accordance with the new method from the date of assets coming into use. Therefore depreciation for the current year was higher and profit was lower by the same amount. The Hon ble jurisdictional High Court in the case of Kinetic Motors Co. Ltd. (supra) has held that it was not in dispute that under the Companies Act both the straight line method and written down value method are recognized. Therefore, once the amount of depreciati ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
