TMI Blog2021 (10) TMI 964X X X X Extracts X X X X X X X X Extracts X X X X ..... urchase price of land and building is composite one and it has no segregation of value of land and building separately, disallowance made by the Assessing Officer/CIT(A) is not sustainable in the eyes of law. - Decided in favour of assessee. - ITA No. 4358/Del/2018 - - - Dated:- 21-10-2021 - SHRI KUL BHARAT, JUDICIAL MEMBER And SHRI O.P.KANT, ACCOUNTANT MEMBER Appellant by : Sh. Kamal Bansal, Adv. Respondent by : Sh. Gourav Pundir, Sr.DR ORDER PER KUL BHARAT , JM : This appeal filed by the assessee for the assessment year 2013-14 is directed against the order of Ld. CIT(A)-22, New Delhi dated 13.03.2018. The assessee has raised following ground of appeal:- 1. That the Ld. CIT(Appeal), New Delhi has erred b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... invoking the provision of section 14A of the Act. However, the addition in respect of disallowance of depreciation was sustained. 5. Aggrieved against this, the assessee is in appeal before this Tribunal. 6. At the outset, Ld. Counsel for the assessee submitted that the issue is squarely covered in favour of the assessee by the earlier decision of the Tribunal in ITA Nos. 536 6888/Del/2014 vide order dated 28.03.2019. 7. Ld. Sr. DR fairly conceded the fact that the issue is squarely covered in favour of the assessee by the decision of the Tribunal. 8. We have heard the rival contentions and perused the material available on record. We find that the Assessing Officer in para 4.3 of the assessment order has followed earlier yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of Alps Theatre (Supra). In view of the ratio laid down in this decision, alps theater, I am of the considered view that the word Building does not include land beneath it. Therefore, the AO, in principle, is held justified in segregating the purchase consideration of the above mentioned property into two: land and building vis-a-vis consequential working of the deprecation on the WDV of the block of asset, Building (50% of the cost of the premises is treated to belong to land.] resulting consequential disallowance of depreciation of ₹ 40,44,605/ -. Accordingly, the disallowance of depreciation ₹ 40,44,605/- is sustained. ' 6.4 After going through the order of the AO submission of the appellant and order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be made. However, if there is a clear-cut identity in respect of price paid to the land and building (i.e., sale deed indicates price of land and building separately), then Assessing Officer is right in allowing depreciation only on the building. 28. In this case also, when the assessee bank does not have any segregation value of land and building of the said premises and it has paid composite price, the entire deprecation claim is allowable under section 32 of the Act. So, following the aforesaid decision rendered by the Co-ordinate Bench of the Tribunal in CIT vs Rajesh Exports Ltd. (supra), and when it is categoric case of the assessee that the purchase price of land and building is composite one and it has no segregation of value ..... X X X X Extracts X X X X X X X X Extracts X X X X
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