2009 (8) TMI 9

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ed this appeal under Section 260A of the Income Tax Act, 1961 (for short, "the Act") against the order of Income Tax Appellate Tribunal, Chennai Bench 'A' passed in I.T.A. No120/Mds/99 dated19.5.2006 for the assessment year 1993-94, proposing to raise following substantial question of law:- "Whether the Hon'ble ITAT is justified in law in holding that depreciation allowed earlier cannot be withdr .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... permissible, as held by the Hon'ble Supreme Court in CIT v. Shaan Finance Pvt. Ltd. (1998) 231 ITR 308. It was further observed that the issue of disallowance of depreciation was a debatable issue and thus, could not be covered by scope of rectification in view of law laid down by the Hon'ble Supreme Court in T.S. Balaram, ITO, Company Circle IV, Bombay v. Volkart Brothers and others 82 ITR 50. 3 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ). 6. In our view, the said judgment does not apply. In that case, the assessee purchased a cinema building and machinery and claimed deduction for repairs and hiring charges.  Subsequently, reassessment proceedings were undertaken and the assessee agreed for withdrawal of deductions towards repairs but pressed the claim for depreciation. While holding that depreciation was allowable, the sa .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X