TMI Blog2018 (10) TMI 1428X X X X Extracts X X X X X X X X Extracts X X X X ..... eld that depreciation on the building and Warehouse was not claimed in the balance sheet but the claim for depreciation was lodged by the assessee before the A.O during the assessment proceedings. Tribunal after examining the facts concluded that the warehouse building was in existence and was also used for business activities, therefore the assessee is entitled to depreciation. In the instant appeal the facts are quite similar as the depreciation on machinery and factory building have not been claimed in the balance sheet i.e. not debited to the Profit & Loss Account but while preparing the computation of income the depreciation of ₹ 26,82,229/- has been claimed. In the Tax Audit Report u/s 44AB of the Act, at the relevant column ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g an individual carries the business under sole proprietorship concern M/s. Rahul Steel Foods Industries. The original return of income was filed on 21.09.2012 in which Income of ₹ 4,22,050/- was declared which was subsequently revised on 22.09.2012 declaring income at ₹ 4,90,390/-. Case picked up for scrutiny under CASS and assessment u/s 143(3) of the Act completed on 30.01.2016 assessing income at ₹ 6,80,390/-. Subsequently the Ld.A.O under the provisions of Section 154 of the Act passed an rectification order observing that the assessee has wrongly claimed depreciation of ₹ 27,88,184/- on machinery and building reflecting it only in the computation of income but in the audited balance sheet no such claim of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2010-11 order dated 16-11-2015. Therefore the addition made by the AO amounting to ₹ 27,88,184/- is Deleted. Therefore, the appeal on these grounds is allowed . 5. Aggrieved revenue is now in appeal before the Tribunal raising sole grievance against the order of Ld.CIT(A) deleting the addition of ₹ 27,88,184/- on account of incorrect depreciation claimed by the assessee. 6. Ld. Departmental Representative vehemently argued supporting the order of Ld.A.O. 7. Per contra Ld. Counsel for the assessee submitted that it has been consistently held by the Hon'ble Courts that it is not mandatory to claim depreciation in the books of accounts and the assessee can claim the same while filing the income tax return showing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laimed on the Written Down Value (In short WDV ) of machinery and ₹ 6,03,801/- claimed on the WDV on the factory building. 10. As far as the contention of the assessee that the claim of depreciation is eligible in the income tax return even if the same has not been claimed in the books of accounts certainly has merits as the issue is squarely covered by the decision of Co-ordinate Bench in the case of Sudha Devi Oswal Vs JCIT Ratlam ITA No.212/Ind/2014 order dated 16.11.2015 wherein similar facts were there before the Tribunal wherein depreciation on the building and Warehouse was not claimed in the balance sheet but the claim for depreciation was lodged by the assessee before the Ld.A.O during the assessment proceedings. The Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X
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