TMI Blog2017 (8) TMI 1704X X X X Extracts X X X X X X X X Extracts X X X X ..... s also been contended on behalf of assessee before us that though as per BIFR order, those non-operative units were supposed for sale, but no action has been taken so far on account of pending approval from the Government of India. All these facts need proper examination at the level of AO before deciding the eligibility of the impugned assets for depreciation u/s. 32. We accordingly, remit the matter back to the file of AO for deciding the issue afresh in the light of observations made in the body of this order above. Assessee appeal is allowed for statistical purposes. - ITA No. 1985 & 2946 /Del./2013 And ITA No. 5399/Del./2013 - - - Dated:- 31-8-2017 - Shri I.C. Sudhir, Judicial Member And Shri L.P. Sahu, Accountant Member Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isposal on the limited issue of depreciation. As per directions of Hon ble Court, the only question which needs to be adjudicated in these appeals is whether the assessee is entitled for depreciation on the assets of its various units which according to the AO stood completely closed and as per assessee were temporarily suspended. 3. The brief facts relevant to the issue are that the Assessing Officer vide assessment order disallowed depreciation worth Rs.53,57,552/-, Rs.45,86,536/- and Rs. 39,29,428/- respectively for A.Yrs. 2007-08, 2008-09 and 2009-10 out of total depreciation claimed by the assessee. The AO observed that the assessee has also claimed depreciation on plants of such units which stood completely closed for the last 8 ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for the purpose of claiming depreciation unless put to use. Accordingly the depreciation as claimed stood disallowed. 4. During the course of hearing, the ld. Departmental Representative reiterating the observations of the Assessing Officer, submitted that since the depreciation has been claimed on the plants which stood completely closed and as such in view of the provisions of section 32, the AO was quite justified in disallowing the depreciation after relying on the decision of Hon ble Supreme Court in Liquidators of Pursa Ltd vs. CIT 25 ITR 265(SC). 5. On the other hand, the ld. Counsel for the assessee-respondent submitted that even if it is taken for granted that some units of the assessee are closed, the depreciation has to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iven the details of assets which were considered as ineligible for depreciation. On the other hand, the assessee has not produced any details before us to show that the depreciation was charged only on the generator sets and office equipments like computers etc. None of the parties before us have unfolded the actual assets, their WDV etc., on which the depreciation was claimed or disallowed. As a matter of fact, the dispute still remains whether the units, on assets of which, the assessee claimed depreciation, were completely closed for ever or were kept stand by after temporary suspension of production. The assessee has not produced any material before us that the said units were kept stand by. Rather, it has also been contended on behalf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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