Case Law Details
Shri Prashant Jayantilal Patel Vs DCIT (ITAT Mumbai)
The sole subject matter of present appeal is to adjudicate whether the assessee would be eligible to claim depreciation on certain premises, which although forms part of block of assets,has been let out during the impugned AY & earned certain rental income which has been assessed as Income from House Property against which statutory deduction has been allowed to the assessee u/s 24.
Held- The undisputed position that emerges is that the assessee has earned rental income from certain office premises which forms part of the block of assets. The rental income from these premises has been assessed under the head Income from House Property against which statutory deduction u/s 24 has already been allowed to the assessee. The assessee is not disputing the disallowance of office maintenance charges claimed against the premises as business expenditure but disputing the claim of depreciation against office premises. The perusal of block of asset, as placed on record, reveal that the assessee is in possession of various Galas, 12 to be precise, out of which few galas have been let out during the year and few galas have been used by the assessee for its own use. The depreciation on galas used for the business purposes is not under dispute. However, depreciation on galas as given on rent amount to Rs.4.34 Lacs which have been disallowed by Ld. AO. It is pertinent to note that against the rental income, the assessee has already been allowed statutory deduction u/s 24 and this depreciation is being claimed as business expenditure over and above the statutory deduction which has been allowed u/s 24. The primary condition as envisaged by Section 32 to claim the depreciation is that the assets should be used for the purposes of assessee’s business which has remained unfulfilled for galas given on rent.
Claiming deduction for depreciation on Let Our Property on which statutory deduction u/s 24 is already been claimed is nothing but making a claim for double deduction which is not permissible under the law. Law is well settled that there cannot be double taxation of same income. Similarly, there cannot be double deduction.
FULL TEXT OF THE ITAT JUDGEMENT
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