Case Law Details
It is not disputed before us that basement and ground floor were fully owned by the assessee and used for the purpose of business by the assessee. This was accepted by the department in the AY 1998-99 as per details available on record. Once, the assessee is the owner of the asset and put the assessee for the purpose of business during the relevant FY, then the depreciation has to be allowed as per the details.
That being the position, the direction of the learned Commissioner of Income-tax (Appeals) to allow the depreciation as admissible in law in respect of assets other than building on the basis of WDV thereof. The ld. CIT(A) further directed the AO that so far as depreciation admissible on building he should restrict allowability of depreciation relatable to basement and ground floor. As it is established that the assessee is the owner of the basement and ground floor and use of assessee for the purpose of its business wholly and exclusively during the relevant year. We find no justification to interfere with the order of the learned Commissioner of Income-tax(Appeals). This ground of revenue’s appeal is decided against the revenue and in favour of the assessee.
INCOME TAX APPELLATE TRIBUNAL, CALCUTTA
ITA No. 1243/Kol/2008 -(Assessment Year: 2002-03)
I.T.O Vs M/s. Mukti Properties (P) Ltd.
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