The New Delhi bench of Income Tax Appellate Tribunal (ITAT) directed re-adjudication to assessing officer for the rejection of claim of depreciation on fixed assets under Section 32 of Income Tax Act, 1961 due to improper filing of depreciation report.
Zila Sahkari Bank Ltd., Bulandshahr, the appellant assessee challenged the disallowance of depreciation on fixed assets as per Section 32 of the Income Tax Act,1961 and addition made under Section 69 of Income Tax Act, 1961 read with section 115BBE of the Income Tax Act, 1961 Act for the same.
P.S. Kashyap, the counsel for the assessee contended that the assessee had maintained regular books of account which are duly audited by a firm of Chartered Accountants and presented before the Registrar of Cooperative Societies. It was also submitted that the accounts of the assessee was also subjected to audit by NABARD on behalf of the Reserve Bank of India.
Bhupendra Anant, the counsel for the revenue contended that the assessee had not filled the depreciation figure in the relevant column and mentioned the depreciation figure 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.
The tribunal Bench observed that the action of the lower authorities invoked the provisions of Section 69 of the Income Tax Act read with Section 115BBE of the Income Tax Act for the purpose of disallowance of claim of depreciation of the assessee, without even understanding and appreciating the fact that the provisions of law.
The two member bench comprising of Saktijit Dey (Judicial) and M. Balaganesh (Accountant) directed the assessing officer for re-adjudication to grant the claim of depreciation under Section 32 of Income Tax Act.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
