Case Law Details
Rangbahar Vs Commissioner of Income Tax (ITAT Mumbai)
In this case CIT (Commissioner of Income tax), disallowed depreciation on mobiles, as the assessee has not provided ‘the place of installation’ of Mobile Phones. Vide para 18 of the Revision Order of the CIT was of the opinion that the assessee has not provided “the place of installation of assets”, which in this case was of mobile phone was not given and therefore the claim of depreciation was not allowable. Mobile in itself means “able to move or be moved freely or easily.” As per Cambridge Dictionary Mobile means, “moving or walking around freely.” The World Book Encyclopaedia also says, “The Cellular (Mobile) Telephone is a movable telephone unit.” But, what to say about Income Tax Department who rejected Depreciation claim on Mobile Phones as place of Installation was not given.
Aggrieved with the Revisionary Order, Assessee approached Mumbai-IAT which settled the case in favour of assessee. ITAT ruled, “By very nature of mobile phone, this cannot be fixed to a particular place.” ITAT allowed depreciation without Place of Installation.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This appeal by the assessee is against the order of the CIT-18, Mumbai under section 263 of the I.T. Act dated 16.01.2009 for A.Y. 2005-06.
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