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

2010 (6) TMI 845 - ITAT AHMEDABAD

2010 (6) TMI 845 - ITAT AHMEDABAD - TMI - ITA No.3166/Ahd/2007 - Dated:- 30-6-2010 - BHAVNESH SAINI, JM AND A N PAHUJA, AM. Assessee by : - Smt. Urvashi Shodhan, AR Revenue by: - Shri K M Mahesh, DR ORDER A N Pahuja: This appeal by the assessee against an order dated 16-03-2007 of the ld. CIT(Appeals), Valsad, raises the following grounds: 1 The order of the learned CIT(A) Valsad, in confirming the action of the AO in calculating the allowance of depreciation on written down value as calculated .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to ₹ 26,756/-. 3 Your appellant craves the leave to add alter, amend modify delete, append, any of the ground/s of appeal. 2 Facts, in brief, as per relevant orders are that return declaring income of ₹ 26,39,600/- filed on 31-08-2004 by the assessee-firm, engaged in manufacturing toughened glasses, after being processed on 31.8.2004 u/s 143(1) of the Income-tax Act ,1961 [hereinafter referred to as the Act ], was selected for scrutiny with the issue of no ice u/s 143(2) of the Act .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Act, considering the WDV of assets right from the beginning after allowing notional depreciation in the AY 2001-02, the AO worked out the depreciation allowable during the year as under: A. Y. Opening W. D. V. Addition during the year [Net] Depreciation for the year Closing WDV 2001-02 3302152 713458 527625 3177985 2002-03 3177985 (- )76180 454481 2647324 2003-04 2647324 1174506 512364 3309466 2004-05 3309466 12250 458274 2863442 Accordingly, the AO allowed depreciation of ₹ 4,58,274/- as .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of the Tribunal in the case of Vahid Paper Converters vs. ITO,98 ITD 165(Ahmedabad). 3. On appeal, the learned CIT(A) while distinguishing the decision in C.I.T. V/s. Mahendra Mills Ltd. 243 ITR 56(SC) and following the view taken in Cambay Electric Supply Industrial Co.(supra), Indian Rayon Corporation Ltd. v/s CIT 261 ITR 98 (Bom,) Mandhana Exports Pvt. Ltd. V/s ACIT 82 ITD 306 & Vahid Paper Converters(supra), upheld the findings of the AO. 4. The assessee is now in appeal before us agains .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

der consideration after al lowing notional depreciation for the AY 2001-02. The learned DR, on the other hand, while relying upon decision dated 1.9.2008 of the Hon ble Delhi High Court in the case of Dabur India Ltd. vs. CIT in ITA no.579/2007 supported the findings of the ld. CIT(A). 5 We have heard both the parties and gone through the facts of the case. The only issue before us relates to depreciation of ₹ 5,27,625/- relating to the AY 2001-02, which was neither claimed in the return n .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

TA no. 1885/Ahd/2005 for the AY 2002-03 in the case of the said assessee, wherein after referring to the definition of written down value in section 43(6) of the Act, it was held as under:- 10. A perusal of the above provisions shows that the WDV in respect of depreciation is to be calculated is the actual cost of the asset to the assessee as reduced by the amount of the depreciation actually allowed to the assessee. Now in the instant case, it is not in dispute that in the earlier years no depr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ound that such amount should have been claimed by the assessee as depreciation in earlier year. In our considered view, WDV can be ascertained only by reducing the actual depreciation allowed to the assessee in an assessment and not the amount which ought to have been allowed to the assessee. It is the actual depreciation allowed to the assessee which only can be reduced for ascertaining the WDV and not the amount which is notionally allowed to the assessee. Thus, in the absence of any material .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

essee as against the depreciation of ₹ 2,53,98,048/- allowed to the assessee. Thus, this ground of appeal is allowed. 5.1 The aforesaid decision dated 28.11.2008 was subsequently followed by another Bench in the case of M/s Siddharth Corporation in ITA No.866/Ahd/2007 and in the case of M/s Gautam Enterprises in ITA No.867/Ahd/2007. 5.2 We find that decision in the case of Dabur India Ltd.(supra) relied upon by the ld. DR is not directly on this issue and therefore, reliance on the said de .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the assets for the year under consideration in terms of provisions of section 43(6) of the Act. Therefore, we have no opt ion but to allow ground no.1 of the appeal. 7 Ground no.2 relates to disallowance of 1/6th telephone and vehicle expenses including depreciation. The AO not iced during the course of assessment proceedings that the assessee debited ₹ 76,375/ - [58313+18062] on account of vehicle / petrol expenses besides depreciation of ₹ 28474/ - on motor car and ₹ 55,688/ .....

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