TMI Blog2012 (6) TMI 790X X X X Extracts X X X X X X X X Extracts X X X X ..... eing entitled to depreciation. Decided in favour of assessee Whether the Appellate Tribunal is right in law and on facts in holding that if interest under section 234B is not levied specifically in the assessment order, the same cannot be charged in the demand notice? - Held that:- The issue is squarely covered by the decision in the case of Commissioner of Income Tax and others v. Ranchi Club Ltd.[2000 (8) TMI 79 - SUPREME Court] as held that in absence of any specific direction giving reference to the section charging interest in the assessment order, no interest can be levied through a notice of demand. Decided in favour of assessee - TAX APPEAL No. 84 of 2000 - - - Dated:- 19-6-2012 - MR. AKIL KURESHI MS. HARSHA DEVANI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ended that the toilet soap was produced in the earlier years and for the plant and machinery in question, depreciation was also allowed in the earlier years. It was contended that since depreciation is to be calculated with reference to a block of assets, individual assets would lose its significance and such depreciation cannot be disallowed merely on the ground that temporarily such asset was not put to use during the year under consideration. The Tribunal upheld the contention of the assessee and allowed the appeal making following observations : [15] After hearing both the parties and the evidence on record, we find that the legal issue in this case has been considered by the ITAT in the decision above quoted. We find force in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been allowed in the past on the ground that such assets were not actually put to use during the year under consideration. The Tribunal ruled in favour of the assessee and held that such depreciation was allowable. On further appeal, the High Court confirmed the view of the Tribunal making following observations : 5. It is not possible to find any legal infirmity in the aforesaid view adopted by the first appellate authority and confirmed by the Tribunal. In fact the assessment order itself reveals that it is not the case of the Assessing Officer that the assets were not put to use at all. Once the factory building is put to use it is not possible to restrict the depreciation on the said building by stating that only a portion thereof h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come Tax and others v. Ranchi Club Ltd., reported in (2001) 247 ITR 209. In the said decision, the Apex Court held that in absence of any specific direction giving reference to the section charging interest in the assessment order, no interest can be levied through a notice of demand. 7. Counsel for the revenue, however, made faint attempt to contend that even though the order of assessment may not specify charging of interest under the provisions of the Income Tax Act, nevertheless if the computation sheet accompanying such an assessment order includes such demand, the notice for demand may still be valid. We would not like to express any opinion on such a contention since in the present case, no such facts have been presented before us ..... X X X X Extracts X X X X X X X X Extracts X X X X
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