DCIT Vs TVS Motor Company Limited (ITAT Chennai)
ITAT Chennai held that the assessee is entitled for its claim of additional depreciation qua amounts not claimed in the preceding year. Thus, claim of the additional depreciation made during the year is allowed.
Facts- Revenue has preferred the present appeal. It is contested that CIT(A) has erred in deleting an addition of Rs.16,71,32,882/- made by the AO on claim of additional depreciation. It is the case of the assessee that correct amount of additional depreciation was only Rs.1,64,60,585/- and not Rs.16,71,32,882/- as wrongly held by the Ld.AO.
Vide cross objection appellant has contested the action of the Ld.CIT(A) in confirming the disallowance made by the Ld.AO u/s 32AC amounting to Rs.2,75,60,290/-.
Conclusion- Hon’ble Coordinate Bench of this tribunal in assessee’s own case vide ITA No.672/Chny/2017 for AY-2012-13 held that the assessee is entitled for its claim of additional depreciation qua amounts not claimed in the preceding year. Thus, we are of the considered view that the assessee is entitled for its claim of the additional depreciation made during the year.
Held that there is no infirmity in the claim of the assessee qua deduction available to it u/s 32AC. We are of the view that the addition made by the Ld.AO and its confirmation by the Ld.CIT(A) is not based upon correct understanding and interpretation of the facts of the case as well as accompanying statute. We therefore set aside the order of lower authorities and direct the Ld.AO to allow the assessee its claim of deduction u/s 32AC of Rs.2,75,60,290/-.
