ITAT Allows Depreciation for Textile Spinning Unit Acquired via Bank of Baroda Auction

Varadaraja Textiles P Ltd. Vs ACIT (ITAT Chennai) In the case of Varadaraja Textiles P Ltd. vs. ACIT (ITAT Chennai), the Income Tax Appellate Tribunal (ITAT) has delivered a significant ruling regarding depreciation on a textile spinning unit acquired through an auction sale conducted by the Bank of Baroda. 1. Background: Varadaraja Textiles P Ltd., the assessee, acquired a textile spinning unit, which included land, building, and machinery, through an auction held by the Bank of Baroda. The total consideration for this acquisition was Rs. 7.33 crores. The assessee claimed depreciation on the ...