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M/s Cadensworth (India) Ltd. Versus Asstt Commissioner of Income Tax

2016 (1) TMI 310 - ITAT CHENNAI

Allowability of depreciation at the rate of 100% on the temporary structure - CIT(A) disallowed claim - Held that:- The assessee has not filed the lease deed document, though the assessee has filed copy of the tax invoice and other bills towards purchase of materials for the above partition/false ceiling works. On perusal of para 4.1 of the order of the ld. CIT(A) and para 2 of the assessment order, we find that there is no clarity on the nature of the asset, on which depreciation at the rate of .....

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ack to the Assessing Officer to verify the lease deed and other documents as may be filed by the assessee and decide the issue afresh in accordance with law after allowing sufficient opportunity of hearing to the assessee by keeping in view of the ratio laid down by the Hon'ble Jurisdictional High Court in the case of Thiru Arooran Sugars Ltd. v. DCIT (2013 (2) TMI 450 - Madras High Court ). - Decided in favour of assessee for statistical purposes. - ITA No. 163/Mds/2015 - Dated:- 20-11-2015 - D .....

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00% on the temporary structure. 2. Brief facts of the case are that the assessee is engaged in the business of servicing of computers, computer peripherals and telecommunication products and trading of telecommunication products. The assessee has filed its return admitting total income of ₹ 3,20,66,880/-. The case of the assessee was processed under section 143(1) of the Income Tax Act, 1961 ["Act" in short]. Subsequently, on verification of the records, the Assessing Officer iss .....

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Assessing Officer has stated that since the assessee has objected to the rectification under section 154 with regard to the claim of 100% depreciation on false ceiling and partitions incurred at the rented premises, it evolves a case of income escaping assessment and therefore, notice under section 148 of the Act was issued on 31.08.2010 for reopening the assessment. The assessee has objected to the notice issued under section 148 and requested the Assessing Officer to drop the proceedings under .....

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0. Subsequently, notice under section 142(1) of the Act was issued on 25.11.2011 and after verification of the details, the assessment was completed under section 143(3) r.w.s. 147 of the Act on 21.12.2011 by determining the total income of the assessee at ₹ 3,22,34,230/- and disallowed various claims of the assessee. 3. The assessee carried the matter in appeal before the ld. CIT(A). After considering the submissions of the assessee, the ld. CIT(A), by following his own order for the late .....

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assessment year 2007-08. The ld. Counsel for the assessee strongly argued that the expenditure incurred by the assessee are in the nature of revenue items and are eligible for depreciation at the rate of 100%. He also relied on various decisions including the decision of the Hon'ble Jurisdictional High Court in the case of Thiru Arooran Sugars Ltd. v. DCIT [2013] 350 ITR 324. The ld. Counsel for the assessee filed a copy of the order of the Tribunal for the assessment year 2008-09 (supra) an .....

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he assessment order, the ld. Counsel for the assessee submitted that the Assessing Officer considered only false ceiling and partitions. Referring to para 4.12 of the assessment order, the ld. Counsel for the assessee read out the details of expenditure of ₹ 99,827/-. 5. On the other hand, the ld. DR strongly supported the orders of authorities below. 6. We have heard both the sides, perused the materials on record and gone through the orders of authorities below. The assessee carried on i .....

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owed depreciation at the rate of 10% amounting to ₹ 9,983 and disallowed 90% amounting to ₹ 89,844 and added to the taxable income of the assessee. On appeal before the ld. CIT(A), the assessee has filed a detailed written submission and contested against the above disallowance made by the Assessing Officer. The ld. CIT(A) has passed the order by following his own order for the assessment year 2008- 09 in assessee's own case and dismissed the ground raised by the assessee. Before .....

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ied on various decision of various Courts including the latest decision of the Hon'ble Jurisdictional High Court in the case of Thiru Arooran Sugars Ltd. v. DCIT (supra), wherein, it was held that Explanation 1 to section 32(1)(ii) of the Act is an exceptional one which permits depreciation in case where the assessee does not own a building, in respect of which the assessee incurs capital expenditure on the construction of any structure or doing of any work, in or in relation to, and by way .....

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