ITAT allows depreciation on molasses tanks

Sasamusa sugar works Pvt. Ltd. Vs DCIT (ITAT Kolkata)

In respect of ground relating to claim of depreciation on molasses tanks for which the ld. CIT(a) had directed the AO to allow the depreciation after verification that the new plant & machinery were indeed put to use by the assessee. Assessee has come before the Tribunal seeking clarity on the direction given by the ld. CIT(A) to the AO. Ld. Counsel of the assessee submitted that the claim for depreciation on molasses tanks was made before the ld. AO which was not considered in proper perspective. He pointed out that detailed explanation was again submitted before the ld. CIT(A) on the claim of depreciation on molasses tanks which is reproduced as under:

Ld. Counsel placed reliance on the decision of Co-ordinate Bench of ITAT, Kolkata in the case of Vishnu Sugar Mills Ltd. (supra) wherein depreciation on molasses tanks was allowed to the assessee. In the light of these submissions and claim of the assessee, we further direct the AO to allow the claim of the assessee on depreciation on molasses tanks by making the correct computation in respect of new assets and the correct written down value (WDV) of the molasses tanks, considering the submissions placed on record. The assessee is already directed to furnish all the details and documentary evidences in support of its claim for due verification by the ld. AO to assist him in arriving at the correct amount of depreciation allowable on the molasses tanks. Accordingly, this ground of the assessee is allowed for statistical purposes. Thus cross-objection of the assessee is partly allowed.

FULL TEXT OF THE ORDER OF ITAT KOLKATA

This cross-objection by the assessee is arising out of the appeal filed by the revenue in ITA No. 2312/Kol/2016 against the order of ld. CIT(A)-4, Kolkata in ITA No. 325/CIT(A)-4/Circle-10(2)/Kol/15-16 dated 20.10.2016 which in turn was against the assessment order passed by DCIT, Circle – 10(2), Kolkata u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the ‘Act’) dated 17.03.2015.

Please become a Premium member. If you are already a Premium member, login here to access the full content.