Case Law Details
DCIT Vs Echjay Industries Pvt. Ltd. (ITAT Mumbai)
ITAT Mumbai held that amount of compensation for defective product being capital in nature cannot be adjusted from WDV of the assets.
Facts- Assessee Company is engaged into the business of manufacturing engineering products & exports. Case of the assessee originally assessed u/s. 143(3) of the Act, determining total income at Rs. 14,77,02,280/- against the returned income of Rs. 12,74,92,260/-.
Against this order assessee preferred an appeal before the Ld. CIT (A) and in its first-round; matter has already travelled up to ITAT. Coordinate Bench Restored the matter back to the AO on the appeal of department pertaining to the issue of Depreciation. In compliance to the order of coordinate bench, AO again assessed the case u/s. 143(3) r.w.s. 254 of the Act by restricting the claim of depreciation to Rs. 1,23,86,490/- against the claim of Rs. 2,92,09,742/-.
Assessee being aggrieved with this order of AO passed u/s. 143(3) r.w.s. 254 in second round of assessment proceedings preferred an appeal before the Ld. CIT (A), who in turn reversed the order of AO and allowed the appeal of the assessee in his order u/s. 250 of the Act. Now, revenue being aggrieved with this order preferred this appeal before us.
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