Uttarakhand Technical University Vs DCIT (ITAT Dehradun)
Depreciation Can’t Be Denied for Want of WDV Chart: Matter Remanded for De Novo Assessment
Dehradun ITAT set aside the orders of lower authorities and restored the issue of depreciation to the file of the AO for fresh adjudication, holding that the matter deserved reconsideration in the interest of justice.
The Assessee, a State Technical University, was denied depreciation in assessment u/s 143(3) as well as in first appeal, on the ground that it failed to furnish year-wise depreciation details and WDV as on 01-04-2015. The AO rejected the claim on the premise that without proper WDV computation, allowable depreciation could not be determined. CIT(A) upheld the disallowance.
Before ITAT, the Assessee contended that capital expenditure and depreciation pertaining to earlier years were part of the block of assets, and depreciation ought to be allowed once assets were duly capitalised and used for the purposes of the institution. Tribunal noted that the claim failed primarily due to lack of supporting documentation, not on a conclusive finding against the Assessee on merits.
Considering the nature of the institution and the fact that the issue involved computation and verification, ITAT held that the matter should be re-examined afresh. Accordingly, the issue was remanded to the AO for de novo assessment, with a direction to the Assessee to furnish year-wise depreciation details and WDV computation, and to the AO to decide the claim in accordance with law after granting proper opportunity of hearing.
The appeal was thus partly allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT DEHRADUN
