ASST CIT 9(2)(1), MUMBAI V. ETAM FUTURE FASHIONS P.LTD, MUMBAI

ITA 3982/MUM/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 0911 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 25-06-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Depreciation

Judgement Text

10 ITA 3982/MUM/2015 WE ARE OF THE VIEW THAT THE DEPRECIATION ALLOWANCE U/S 32(1)(III) APPLIES ONLY TO UNDERTAKING ENGAGED IN GENERATION AND DISTRIBUTION OF POWER AND THE COMPANY ENGAGED IN THE BUSINESS OF RETAIL TRADING IS NOT EN TITLED TO DEPRECIATION ON WRITE OFF VALUE OF ASSETS U/S 32(1)(III) AND IT WOULD ONL Y BE ENTITLED TO DEPRECIATION U/S 32(1)(I) OF THE INCOME-TAX ACT, 1961. THE AO IS DI RECTED TO ALLOW NORMAL DEPRECIATION AS PER THE RATES PRESCRIBED ON WDV ON CORRESPONDING BLOCK OF ASSETS. THE CIT(A), WITHOUT APPRECIATING THE FACTS , HAS DELETED ADDITION MADE BY THE AO TOWARDS DISALLOWANCE OF DEPRECIATION ON D ISCARDED ASSET; HENCE, WE SET ASIDE THE ORDER PASSED BY THE C IT(A) AND UPHOL D THE ADDITION MADE BY THE AO. 11. IN THE RESULT, APPEAL FILED BY THE REVENUE IS ALLOW ED. ORDER PRONOUNCED IN THE OPEN COURT ON 05 TH JANUARY, 2018. SD/- SD/- (SAKTIJIT DEY) (G MANJUNATHA) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DT : 05 TH JANUARY, 2018 PK/- COPY TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR /TRUE COPY/ BY ORDER ASSTT. REGISTRAR, ITAT, MUMBAI