Issue Regarding Claim of Depreciation Cannot Decided Until Dispute Regarding Capitalization of Expenses in Assessment Order is decided: ITAT [Read Order]
![Issue Regarding Claim of Depreciation Cannot Decided Until Dispute Regarding Capitalization of Expenses in Assessment Order is decided: ITAT [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/04/Claim-Depreciation-Decided-Dispute-Regarding-Capitalization-Assessment-Order-ITAT-TAXSCAN.jpg "Issue Regarding Claim of Depreciation Cannot Decided Until Dispute Regarding Capitalization of Expenses in Assessment Order is decided: ITAT [Read Order]")
The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has recently held that Issue regarding claim of depreciation could not be decided until dispute regarding capitalization of expenses in assessment order is decided. Himanshu Garg appeared for the assessee and Sanjay Kumar appeared for the revenue. Assessee Plastic Omnium Auto Inergy Manufacturing IndiaPrivate Limited,...
The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has recently held that Issue regarding claim of depreciation could not be decided until dispute regarding capitalization of expenses in assessment order is decided.
Himanshu Garg appeared for the assessee and Sanjay Kumar appeared for the revenue.
Assessee Plastic Omnium Auto Inergy Manufacturing IndiaPrivate Limited, took international transactions with its Associated Enterprise (AE) namely Inergy Japan, relating to payment of development expenses amounting to Rs.1,98,00,000. The assessee capitalized these expenses.
Deprecation on the capitalized amount has been claimed in Assessment year 2012-13, 2013-14, 2014-15 and 2016-17.Then the assessing officer denied it. Against the order of the assessing officer, assesse filed appeal before the CIT(A). But the CIT(A) rejected the appeal of the assessee .Therefore the aasesee filed second appeal before the Tribunal.
The coordinate bench determined that the issue regarding claim of depreciation in Assessment Year 2012-13, 2013-14, 2014-15 and 2016-17 could not be decided until the dispute regarding capitalization of expenses amounting to Rs.1,98,00,000/- in assessment order is decided.
Further, the bench found that the dispute regarding capitalization of expenses amounting to Rs.1,98,00,000/- is restored to the file of the CIT(A) by the order of Coordinate Bench of ITAT,Delhi.
Thereafter, the two member bench of the Challa Nagendra Prasad, Judicial Member and Anadee Nath Mishra, Accountant Member set aside the impugned appellate orders of the CIT(A) and restore all the issues in dispute to the file of the CIT(A) with the direction to pass a fresh order in accordance with law, after providing reasonable opportunity to the assessee.
To Read the full text of the Order CLICK HERE
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