Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (12) TMI 1229 - ITAT KOLKATA

2015 (12) TMI 1229 - ITAT KOLKATA - TMI - Addition made on account of excess depreciation claimed by assessee - AO has disallowed the depreciation of assessee by treating the transaction as sale of building and plant & machinery inbuilt therein - CIT(A) deleted the addition - Held that:- The assessee is following a policy of deducting the sale proceeds of the office from the building block only. It has properly deducted in this year also as the commercial space is a lease hold property. So the a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t revenue

Addition on account of payment of gratuity - CIT(A) deleted the addition - Held that:- Since the payment has actually been made by assessee during the relevant year at the time of the employee leaving the services of the assessee and the same has been recorded in its regular books of account, it can be inferred that the expenditure has actually been incurred by assessee. Hence, we confirm the order of Ld. CIT(A).- Decided against revenue - ITA No.417/Kol /2013 - Dated:- 16-1 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

) vide his order dated 27.12.2007 for assessment year 2005-06. The Revenue has raised the following grounds of appeal : 1) That in the fact and circumstances of the case, Ld. CIT(A) has erred in holding that assessee is entitled to get the benefit of depreciation on Building and Plant & Machinery while the mere fact is that after selling off a portion of the property WDV of the block of assets of Building and Plant & Machinery had not been adjusted as provided in the sub clause (ii) rea .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed in the business of development of software technology parks and related infrastructure facilities. The assessee had acquired a land on long lease basis from the West Bengal Electronics Industries Development Corporation Ltd., The assessee constructed two commercial towers, known as Intelligent Towers in Salk Lake City in Kolkata. The commercial property consists of building, land appurtenant thereto as well as plant and machinery inbuilt in the building such as lift, car parking, water supply .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sferred two portion commercial space on long term lease basis. The AO noticed that the consideration received on transfer of the commercial space has not been reduced from the closing WDV of the block of the depreciable assets in terms of section 43(6) of the Act. The AO therefore was of the view that the assessee has claimed excessive depreciation on the closing WDV of the block of assets as the effect of the consideration received on transfer was not reduced from the respective block of assets .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ilding and balance 78,83,695/- treated sale of plant & machinery. The AO accordingly reduced the closing WDV of the depreciable assets and allowed depreciation on such reduced closing WDV. The AO worked out the depreciation of ₹ 13,87,530/- (10% of 1,38,75,305/-) and depreciation of plant and machinery at ₹ 19,70,923/- (25% 78,83,895/-). The total depreciation amounting to ₹ 33,58,453/- was disallowed by the AO and added to the income of assessee. 5. Aggrieved, by the order .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

epreciation had been claimed at the reduced value. Therefore, the contention of AO that the depreciation had been claimed excessive was not correct. In support of the claim the assessee had submitted the audited balance sheet where the transaction was duly recorded. However, in other transactions of sale of property, i.e., property transferred to M/s Bangur Welfare Trust it was submitted that property sold to M/s Bangur Welfare was purchased during the relevant previous year and it was held as c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d deleted the disallowance of depreciation made by the AO. In doing so, the Ld. CIT(A) followed the submission of the order of this Tribunal in assessee s own case in ITA No.1392/Kol//2008 dated 03-04-2009 on an identical the issue decided in favour of assessee. 7. Aggrieved, by the order of Ld. CIT(A) Revenue is in appeal before the Tribunal. Shri Sanjit Kr. Das, Ld. Departmental Representative appearing on behalf of Revenue and Shri D.S. Damle, Ld. Authorized Representative appearing on behalf .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y inbuilt therein. However, we find that the assessee is following a policy of deducting the sale proceeds of the office from the building block only. It has properly deducted in this year also as the commercial space is a lease hold property. So the apportionment made by AO between the building and plant & machinery is not justified. We also find that in assessee s own case in ITA No.1392/Kol/2008 it was held by this Tribunal as under:- ITA No.417/Kol/2013 A.Y.2005-06 DCIT Cir-2, Kol. V. M/ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version