TMI Blog2016 (9) TMI 1554X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee had claimed 80% depreciation in view of the rule. Having regard to the fact that ITAT went by the text of the rule itself, in the absence of any other indication within the statute with respect to its inapplicability, the impugned ruling cannot be faulted. No question of law arises on this aspect. Treatment of the service line deposit over the years being capital or revenue - AO refused to recognise the amounts as capital receipts - HELD THAT:- Assessee offered 1/3rd of the amount to the profit and loss account and later explained that these were capital receipts and are not revenue in nature. This volte face of the assessee seems to have triggered the AO s decision that the receipts were not capital but revenue and therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - - - Dated:- 14-9-2016 - HON'BLE MR. JUSTICE S. RAVINDRA BHAT AND HON'BLE MS. JUSTICE DEEPA SHARMA For the Appellant : Mr. P. Roy Chaudhuri, Senior standing counsel For the Respondent : Ms. Kavita Jha, Ms.Roopali Gupta and Mr.Bhuwan Dhoopar, Advocates ORDER 1. These matters have been taken up today as 13.09.2016 was declared holiday on account of Id-ul-Zuha. 2. Admit. 3. The following question of law arises for consideration: Did the Tribunal fall into error in holding that the provision of Section 115 JB of the Income Tax Act did not apply to the assessee in this case? 4. Other questions of law sought to be urged are firstly with respect to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e face of the assessee seems to have triggered the AO s decision that the receipts were not capital but revenue and therefore entirely liable to be taxed. The issue is covered against the revenue in Hoshiarpur Electric Supply Co. vs. CIT {1961} 41 ITR 608 (SC). 9. As far as the change in the method of valuation is concerned, the ITAT permitted the assessee to adopt the moving average methodology. The ITAT noted that the previous method adopted by the assessee was First In First Out (FIFO) in terms of AS2. However, they changed that method from 2005-2006 onwards. The ITAT concurred with the CIT (A) s decision that the assessee had the autonomy to decide appropriate method as along as the authority did not find anything fundamentally ..... X X X X Extracts X X X X X X X X Extracts X X X X
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