Case Law Details
Mahanadi Coalfields Ltd. Vs DCIT (ITAT Cuttack)
The issue under consideration is whether the leasehold rights is considered as intangible assets and hence eligible for depreciation under section 32(1)(ii)?
ITAT states that, this issue is covered by decision of the Tribunal in assessee’s own case for the previous assessment year i.e. A.Y.2014-2015 in ITA Nos.264/CTK/2017, order dated 20.03.2018. The assessee has raised these additional grounds as per the direction of Hon’ble High Court of Orissa, Cuttack in W.P (C) No.24 of 2013 and Misc. Case No.5716 of 2013 order dated 20.3.2013. In view of above, ITAT admit these additional grounds for our consideration. On merits also, ITAT find force in the submission of ld D.R. that the depreciation is not allowable u/s.32(1)(iii) of the Act in respect of intangible assets, which is supported by judicial pronouncements cited above. In view of above, ITAT dismiss these grounds filed by the assessee. In view of above, ITAT hold that the lease hold rights are not eligible for depreciation u/s.32(1)(ii) of the Act considering it as intangible rights and, accordingly, dismiss the ground of appeal of the assessee.
FULL TEXT OF THE ITAT JUDGEMENT
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