Case Law Details
Addl. CIT Vs Gillette Diversified Operations Pvt. Ltd. (ITAT Delhi)
Section 32 requires that the assessee must use the asset for the ‘purposes of business’. It does not mandate usage of the asset by the assessee itself. As long as the asset is utilized for the purpose of business of the assessee, the requirement of section 32 will stand satisfied, notwithstanding non-usage of the asset itself by the assessee.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal is preferred by the Department against order passed by the Learned Commissioner of Income Tax (Appeals)-35, New Delhi {CIT(A)} for Assessment Year 2014-15, wherein vide order dated 01.11.2017, the Ld. CIT(A) has allowed relief to the assessee in respect of disallowance on depreciation on Plant and Machinery and Tools and Moulds amounting to Rs.21,27,83,175/- and also allowed relief in respect of insurance expenses incurred on Machinery and Moulds amounting to Rs.14,52,323/- and further relief in respect of repair and maintenance expenses on Plant and Machinery amounting to Rs.23,83,146/-.
2.0 The brief facts of the case are that the assessee company is engaged in trading of wide range of personal care products. The assessee is also engaged in the distribution of Oral-B care and other oral care products primarily falling under the health care segment. The return of income was filed declaring an income of Rs.5,19,14,780/-. The case was selected for scrutiny and the assessment was completed at an income of Rs.26,98,47,910/- after making disallowance on account of depreciation on Plant and Machinery to the tune of Rs.21,27,83,175/-, an addition on account of insurance expenses of Rs.14,52,323/- on Machine and Moulds and a further addition on account of repair and maintenance expenses of Rs.23,83,146/- on Machinery and Moulds.
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