Case Law Details
Zila Sahkari Bank Ltd Vs DCIT (ITAT Delhi)
ITAT Delhi held that disallowance of genuine claim of depreciation merely because the depreciation figure is not reflected in column no. 45 of ITR is unsustainable in law. Action of lower authorities of disallowing the genuine claim of depreciation on a very flimsy reason is unjustified.
Facts- The assessee is challenging the disallowance of depreciation of Rs. 97,94,657/- on fixed assets as per Section 32 of the Act and addition made u/s. 69 r.w.s. 115BBE of the Act for the same.
Conclusion- The only reason adduced by the lower authorities for not allowing the depreciation was that the assessee has not filled the depreciation figure in the relevant column of ITR, i.e., in column No.45 of the return in Part-A – P& L Account in the ITR form. We find that the assessee had mentioned the depreciation figure of Rs.1,00,46,380/- under column No.39 in sub-item No.14 under the main head: ‘Other expenses’ in the ITR. Though mentioning of depreciation figure in column No.39 under the head ‘Other expenses’ was a mistake, still, the depreciation figure together with the computation thereon had been enclosed and claimed properly by the assessee in the return of income. This figure of depreciation of Rs.1,00,46,380/- duly tallies with the depreciation figure mentioned in the P&L Account of the assessee also. Hence, we do not appreciate the action of the lower authorities in disallowing the genuine claim of depreciation on a very flimsy reason. We also condemn the action of the lower authorities in invoking the provisions of section 69 of the Act r.w.s. 115BBE of the Act for the purpose of disallowing the claim of depreciation of the assessee, without even understanding and appreciating the fact that the provisions of section 69 of the Act , by no stretch of imagination, could be applied in the instant case. We direct the ld. AO to allow depreciation in the sum of Rs.1,00,46,380/-. Accordingly, ground No.2 raised by the assessee is allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
