TMI Blog2015 (12) TMI 1230X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. CIT(A). - Decided against revenue Addition made 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:- 16-10-2015 - N. V. Vasudevan, JM And Waseem Ahmed, AM For the Appellant : Shri Sanjit Kr Das, JCIT, SR-DR For the Respondent : Shri D S Damle, FCA ORDER Per Waseem Ahmed, Accountant Member This appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orporation 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, security maintenance etc. The assessee treated the commercial property and plant machinery inbuilt thereto as depreciable assets forming part of the building block AND plant and machinery block in the books of accounts and claimed depreciation thereon. During the previous year, the assessee transferred some part of commercial space on long term lease basis. Some Part of commercial spaces were let out on monthly rental basis for short duration. 4. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 5. Aggrieved, by the order of AO, the assessee preferred appeal before Ld. CIT(A). Before Ld. CIT(A) the Ld. AR demonstrated that assessee had sold out its commercial spaces forming part of the building block of assets only to M/s Bina Natural Produce Pvt. Ltd. for an amount of ₹ 1,09,50,300/- and to M/s Bangur Welfare Trust for an amount of ₹ 1,08,08,700/-. The assessee demonstrated that the WDV of the property sold to M/s Bina Natural Produce Pvt. Ltd. had been duly reduced form the block of asset and the depreciation 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 balanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd relied on the order of Ld. CIT(A). 9. We find from the aforesaid discussion that AO has disallowed the depreciation of assessee by treating the transaction as sale of building and plant machinery 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:- At the time of hearing, the Ld. DR could not produce any evidence in support of the contention th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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