Case Law Details
Daawat Foods Ltd. Vs ACIT (ITAT Delhi)
As far as the disallowance of the depreciation of Rs.93,406/-on the capital expenditure is concerned, we find that AO has disallowed the depreciation on the capital expenditure of Rs.5,35,468/- which has been stated to have been incurred by the assessee in cash. We find that the Co-ordinate Bench of Tribunal in the case of Kansi Ram Madan Lal vs. ITO (supra), the Co-ordinate Bench of Tribunal has held that the provision of Section 40A(3) are not attracted in the case of capital expenditure.In view of these facts, we hold that AO was not justified in disallowing the depreciation of Rs.93,406/- u/s 40A(3) of the Act.
FULL TEXT OF THE ITAT JUDGEMENT
Both the appeals filed by the assessee are directed against the order dated 28.03.2013 of the Commissioner of Income Tax (A)-XXXIII, New Delhi relating to Assessment Years 2007-08 & 2008-09.
2. The relevant facts as culled from the material on records are as under:
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