Case Law Details
PCIT Vs Babul Products (P.) Ltd. (High Court Gujarat)
Considering the fact that the assessee was in business however could not run the factory in the year under consideration because of the stay order granted by the Court and even otherwise, the business of the assessee was continued, and therefore, the learned Tribunal allowed the claim of the assessee of depreciation under Section 32 of the Income Tax Act by observing that it cannot be said that the assessee stopped /closed the business, we are in complete agreement with the view taken by the learned Tribunal.
FULL TEXT OF THE HIGH COURT ORDER / JUDGMENT
[1.0] Feeling aggrieved and dissatisfied with the impugned order passed by the learned Income Tax Appellate Tribunal Bench “A”, Ahmedabad (hereinafter referred to as “the learned Tribunal”) dated 09/10/2017 in ITA No.553/Ahd/2014 for the Assessment Year 2009-10 by which the learned Tribunal has allowed the said Appeal preferred by the assessee and deleted the addition made on account of disallowance of depreciation of Rs.334,03,491/- made by the learned Assessing Officer confirmed by the learned CIT(A) on account of contravention of provisions of Section 32 of the Income Tax Act and deleted the addition of Rs.54,24,294/-made by the learned Assessing Officer under Section 41(1) of the Income Tax Act on account of cessation of liability, revenue has preferred the present Tax Appeal with the following proposed questions of law;
(a) “Whether the Appellate Tribunal has erred in law and on facts in deleting the addition made on account of disallowance of depreciation of Rs.34,03,491/- which is in contravention of the provision of Section 32 of the Act?”
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