M/S. CLC TANNERS ASSOCIATION,TWENTY FOUR PARGANAS SOUTH V. D.C.I.T., CIRCLE - 1(1) EXEMPTION, KOLKATA

ITA 2474/KOL/2024

AI Insights

The case involves M/s CLC Tanners Association, a trust engaged in a tripartite agreement with the Government of West Bengal and the BOT Agency of Calcutta Leather Companies, appealing against the order of the CIT(A), National Faceless Appeal Centre, Delhi. The primary issue was the disallowance of depreciation claimed by the assessee amounting to Rs.40,48,460 for the assessment year 2018-2019. The AO had disallowed the claim on the grounds that the assets were claimed as an application of income. The Tribunal examined the income and expenditure accounts and the list of fixed assets, noting that the assessee had not claimed the fixed assets as an application of income, thereby entitling them to depreciation.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 829281 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 1 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-01-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Kolkata
• Assessment Year: misc
• Appeal Filed On: 05-12-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHIJIT ADHIKARY
• Assessee Lawyers: SUNIL SURANA
• Keywords: Depreciation; Search and seizure

Judgement Text

" आयकर अपीलीय अधिकरण, “एस.एम.सी” न्यायपीठ, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH KOLKATA श्री जाजज माथन, न्याययक सदस्य क े समक्ष । BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER आयकर अपील सं/ITA No.2474/KOL/2024 (नििाारण वर्ा / Assessment Year. :2018-2019) M/s CLC Tanners Association Calcutta Leather Complex, CETP PO Karaidanga, Parganas(South) West Bengal-743502 Vs ITO Ward-2(2), Kolkata PAN No. : AACCC 7323 H (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri Sunil Surana, AR राजस्व की ओर से /Revenue by : Shri Abhijit Adhikary, Sr. DR सुनवाई की तारीख / Date of Hearing : 12/01/2026 घोषणा की तारीख/Date of Pronouncement : 12/01/2026 आदेश / O R D E R This is an appeal filed by the assessee against the order dated 15.10.2024 passed by the ld.CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the assessment year 2018-2019. 2. It was submitted by the Ld.AR that the assessee is a trust which is is entered into a tripartite agreement with the Government of West Bengal ad the BOT Agency of Calcutta Leather Companies for various works. It was submission that the during the impugned assessment year the assessee had claimed depreciation of Rs.40,48,460/- in its return of income. The AO had disallowed the assessee’s claim of the depreciation on the ground that the depreciation cannot be granted in respect of assets. The acquisition which have been claimed as application of income. The Ld.AR drew my attention to various pages of the paper book, most specifically at page 28 which is the copy of the fixed assets, which reads as follows:- Printed from counselvise.com ITA No.2474/KOL/2024 2 3. It was submission that during the impugned assessment year the assessee has the made addition of fixed assets of only Rs.2,58,743/-. It was submission that the other assets which have also been acquired in the earlier years have never been claimed as application. The Ld.AR further drew my attention to the income expenditure account at page 27 for the impugned assessment year which reads as follows:- Printed from counselvise.com ITA No.2474/KOL/2024 3 4. It was submission that the assessee has not claimed application of income in respect of the assessee required. It was submission that the assessee is entitled to claim of depreciation. The Ld.AR also drew my attention to the assessment orders for the assessment years 2014-15 and 2013-14 where the AO himself has granted the assessee’s depreciation on the assets. It was submission that the assessee may be granted depreciation as claimed. Printed from counselvise.com ITA No.2474/KOL/2024 4 5. In reply, the Ld.Sr DR vehemently supported the orders of the AO and CIT(A). 6. I have considered the rival submission. A perusal of the statement of income and expenditure and the list of fixed assets clearly shows that during the year nor in the earlier year the assessee has claimed the acquisition of fixed assets as application of the income. As it is noticed that the assessee had not claimed the fixed assets acquired as application of income, obviously the assessee is entitled to claim the depreciation. This being so, the AO is directed to grant the assessee the benefit of deprecation as claimed. 7. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 12/01/2026. Sd/- (जाजज माथन) (GEORGE MATHAN) न्यानयक सदस्य / JUDICIAL MEMBER कोलकाता Kolkata; ददनाांक Dated 12/01/2026 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) Income Tax Appellate Tribunal, Kolkata 1. अपीलाथी / The Appellant- 2. प्रत्यथी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कोलकाता / DR, ITAT, Kolkata 6. गार्ज फाईल / Guard file. सत्यापपत प्रयत //True Copy// Printed from counselvise.com "