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TMI Blog2023 (6) TMI 1204X X X X Extracts X X X X X X X X Extracts X X X X ..... are common except for date, figures and assessment year in question. Therefore, they have been clubbed together and taken up for disposal in a consolidated order for the sake of convenience. Therefore, we have first taken up the issues involved in ITA No. 45/Kol/2022: "The assessing officer erred in making addition on account of depreciation amounting to Rs. 1,65,63,389/- in the order passed u/s 147/143(3) dated 05.11.2018 stating that 'the depreciation claimed by appellant cannot be allowed as the production and business activity of the assessee company was stopped since the year 2003. Further the ld. CIT(A) 'National Faceless Appeal Centre' has erred in issuing order that 'it is held that the action taken to disallow the depreciatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l for initiating assessment proceedings u/s 147 of the Act to ld. PCIT-4, Kolkata vide letter dated 12.03.2018 and the ld. PCIT had approved the same. The ld. AO during the re-assessment proceeding, letter was issued to the assessee company to explain why the alleged claim of depreciation on plant & machinery amounting to Rs. 1,65,63,389/- should not be disallowed as there was no business activity of the assessee company during the year under consideration. In response to the same, assessee company filed reply before the ld. AO stating that assessee-company is a Government of India Undertaking and never have objectives to claim excessive allowances in any form under the Income Tax Act, for reduction of tax liability and it has satisfied all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Year neither the company been closed down nor it has intention to shut down the company or its operation such a temporary gone out in the business does not amount to closure of the business once and for all, further since appellant is Govt. of India Undertaking under Ministry of Heavy Industries, Government of India, it cannot be deemed or presumed that the company's business has been closed unless it has specific order/direction from the relevant regulatory body or Govt. of India, Hence it is clear that the term " Assets( one or more in the block) being used for the business is satisfied during that particular relevant Previous Year. ii. Further the attention is drawn to the rational and purpose for which the concept of block assets ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ock was actively and actually used and other of that block was in passive use therefore entire block to be considered as in use." 6. On the other hand, ld. DR supported the order of the ld. CIT(A) and submitted that the production and business activity of the assessee-company was stopped since the year 2003. Therefore, alleged claim of depreciation on plant & machinery rightly disallowed by the authorities below. 7. We have heard the rival submissions and perused the material on record and going through the various case laws before us in respect of instant issue in the case of CIT vs Oriental Coal Co. Ltd. (1994) 120 CTR (Cal) 202: (1994) 206 ITR 682 (Cal). The Hon'ble Calcutta High Court held that there was strike, lockout in the factory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ock-out was an act of the assessee in Suspending the business operations. The allowance of depreciation may not depend on the actual working of the machinery but no depreciation is allowable if the assets are not used at all for the business of the assessee in the relevant previous year. In the instant case, admittedly, none of the assets of the business were used by the assessee during the relevant previous year. Therefore, since the plant and machinery in question were not actually used for the purposes of business, no depreciation was admissible to the assessee under sub-section (1) of section 32." 8. In the present case of assessee, the production and business activity was stopped since the year 2003 and profit & loss account of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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