Case Law Details
ACIT Vs Central Warehousing Corpn. (ITAT Delhi)
Now coming to the depreciation in respect of license/registration fee paid to Indian Railways, the ld. CIT(A) based his finding on the observations of the Tribunal in the case of ONGC Videsh Ltd. (supra) wherein it was held that the right granted to the assessee by way of license whereunder the assessee had become owner of such right, such license enables the assessee to have an access to carry on their business and therefore, it falls within the category of an asset u/s. 32(1)(ii) of the Act. We find that the claim of depreciation in respect of license/ registration fee paid by the assessee to the Indian Railways is an asset whereon depreciation u/s. 32(1) is allowable.
FULL TEXT OF THE ITAT JUDGEMENT
Challenging the order dated 21/03/2017 in appeal No. 40/15-16 passed by the learned Commissioner of Income Tax (Appeals)-2, New Delhi (“Ld. CIT(A)”), for assessment year 2012-13, in the case of M/s. Central Warehousing Corporation(“the assessee”), Revenue preferred this appeal. The assessee has also filed cross-objections on the ground that provisions of section 115JB are not attracted in the case of assessee, as the assessee is not covered by Companies Act.
2. Brief facts of the case are that the assessee Corporation is an Authority constituted under the law for marketing of agricultural produce and derives bulk of its income from the letting out of godowns or warehouse for storage and processing the marketing of commodities etc. For the assessment year 2012-13, they have filed return of income on 28/09/2012 declaring normal income at Rs.2,06,15,25,500/- and book profit of 1,74,80,38,493/- under section 115JB(MAT) of the Income-tax Act, 1962 (“the Act”). Subsequently, the assessee filed a revised return of income on 29.03.2014 declaring income under normal provisions amounting to Rs.2,04,12,37,520/- and book profit at Rs.74,80,38,493/-. Assessment u/s. 143(3) of the Act was complete at Rs.2,08,50,46,500/- by making an addition of Rs.1,95,32,194/- on account of cost of Dunnage, Rs.92,76,786/- on account of registration fee paid to Indian Railways and Rs.1,50,00,000/- by disallowing the expenditure on CSR.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
