Case Law Details
DCIT Vs Futurz Next Services (Private) Limited (ITAT Delhi)
On careful consideration, the fact that emerges that during the year the assessee has received the total sale consideration of ₹ 2 crores only 11/7/2012 and five shares of that society has also been transferred prior to execution of the sale deed. The sale deed was executed on 12/7/2012. Thus it is apparent that full value of the consideration was received by the assessee before executing sale deed on 12/7/2012. Merely because the seller agreed to pay and discharge the outstanding dues and liabilities in respect of the share in the premises , it does not amount that the assessee has not transferred/sold the property during the year. Now issue here is the claim of the depreciation on the block of the „building‟ owned by the assessee and used for the purposes of the business of the assessee on which depreciation is claimed. Depreciation is allowable to the assessee on the written down value which is defined under section 43 (6) of the act. According to the subsection 43(6)( C ) (i)(b) the block of the assets is to be reduced by the monies payable in respect of any asset falling within that block which is sold or discarded or demolished or destroyed during the previous year. Therefore, definitely assessee has sold during the year this immovable property by which the written down value of the block of the asset should be reduced. Now the question is whether it should be reduced by the value as determined under section 50C of the act or actual money received by the assessee. The provisions of section 50C cannot be incorporated in the computation of block of the assets for the simple reason that it only substitutes the full value of the consideration received or accruing as a result of transfer for the purposes of section 48 only. Therefore, we direct the learned assessing officer to reduce the written down value of the asset only by Rs 2 crores, which has been received by the assessee on sale of the above property. Accordingly ground number 2 and 3 are disposed off holding that assessee has requested to reduce Written down value of Building block by ₹ 2 crores being the actual sale consideration instead of ₹ 28714500 being the Stamp duty value of the property is acceded to. Thus, opening double DVD of the block building stood at ₹ 3 5197290/– is required to be reduced by ₹ 2 crores only, thereby the WDV remains of ₹ 1, 51,97,290/- on which the assessee would be entitled to the depreciation @ 10 % amounting to Rs. 15,19,729/–, against which the assessee has claimed depreciation of Rs. 35,19,729/– therefore difference of the depreciation excess claimed by the assessee is Rs. 20 lakhs instead of Rs 2963061/–. Thus excess depreciation disallowance of Rs 20 lakhs is confirmed. Accordingly ground number two and three of the appeal of the assessee is partly allowed.
FULL TEXT OF THE ITAT JUDGEMENT
01. These are cross appeals filed by the assessee and the Revenue against the order of The Commissioner of Income Tax (Appeals)-30, New Delhi,[ the Ld CIT (A)] dated 25.01.2017. The assessee has raised the following 3 grounds in its appeal No. 1383/Del/2017 and the Revenue has raised the following 7 grounds in its appeal No. 2396/Del/2017:-
ITA No. 1383/Del/2017 :
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