Case Law Details
Pearl Freight Services (P) Ltd. Vs. ACIT (ITAT Mumbai)–
We have observed that the assessee sold motor car but there were other motor cars also existing in the block of assets and the said block of asset of motor car has not ceased to exist as on 31-3-2009. The assessee has claimed loss on the sale of motor car of Rs. 26,686 which was wrongly debited to P&L account, however the assessee is entitled to the depreciation on the block of asset consisting of motor car remaining after crediting sale proceeds of the motor car sold during the year and to that extent depreciation need to be re-worked to be allowed in accordance with provisions of section 32. Thus, this matter needed to be restored to the file of the assessing officer for re-computation of depreciation in accordance with law after necessary verifications and examination. Needless to say that the assessing officer shall provide proper and adequate opportunity of being heard to the assessee in denovo proceedings in accordance with principles of natural justice in accordance with law. We order accordingly.
RELEVANT EXTRACT OF ITAT JUDGMENT
This appeal, filed by the assessee, being ITA No. 4014/Mum/2014 for assessment year 2009-10 is directed against the appellate order dated 20-2-2014 passed by learned Commissioner (Appeals)-22, Mumbai (hereinafter called “the CIT(A)”) for assessment year 2009-10, appellate proceedings had arisen before learned Commissioner (Appeals) from the assessment order dated 12-12-2011 passed by learned assessing officer (hereinafter called “the AO”) under section 143(3)(ii) of the Income Tax Act, 1961 (hereinafter called “the Act”).
2. The grounds of appeal raised by the assessee in the memo of appeal filed with the Income Tax Appellate Tribunal, Mumbai (hereinafter called “the tribunal”) read as under :–
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