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2015 (12) TMI 1230 - ITAT KOLKATA

2015 (12) TMI 1230 - ITAT KOLKATA - TMI - Addition on account of excess depreciation - CIT(A) deleted the addition - Held that:- 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. The facts in the previous year are identical to the facts as i .....

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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 appeal by the Revenue is arising out of order of Commissioner of Income Tax (Appeals)-XIV, Ko .....

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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) read with (i)(B) of clause (c) of sub section (6) of section 43 of the I.T. Act, 1961." 2) That in the facts and circumstances of the case, Ld, CIT(A) had erred in deleting addition on account of gratuity payment without showing in specific reason". First Issue 2. Ground raised by Revenue is that Ld. .....

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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 assesse .....

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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 in the books of accounts. Accordingly the AO disallowed the excessive depreciation claimed by the assessee by working out the depreciation on the sale value of the assets. The composite sale value of the assets was ₹ 2,17,59,000/- for the commercial space and plant and machinery. The AO div .....

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t 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 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 Welfa .....

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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 capital asset not forming the part of the block of assets. The same property was sold to M/s Bangur Welfare during the relevant FY itself and the profit thereon was declared as short term capital gain. Hence this commercial space never formed part of the fixed assets and therefore its effects had n .....

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presentative appearing on behalf of Revenue and Shri D.S. Damle, Ld. Authorized Representative appearing on behalf of assessee. 8. We have heard rival parties and perused the materials available on record. Before us Ld. DR vehemently supported the order of AO whereas Ld. AR supported the order of Ld. CIT(A) and submitted the audited financial statements along with depreciation chart in support of his claim and relied on the order of Ld. CIT(A). 9. We find from the aforesaid discussion that AO ha .....

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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 that the space sold by the assessee was inclusive of plant and machinery. He was also directed to verify whether the assessee has reduced the sale consideration form the value of building. The Ld DR, after verification of the assessment records, confirmed that the assessee has reduced the entire sale consideration of ₹ 1,18,28, .....

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