In a major relief to the Oriental Bank of Commerce the Delhi High Court allowed depreciation on temporary wooden structures.
By the impugned order, the Income Tax Appellate Tribunal [ITAT] allowed the appeals of the respondent/assessee, Oriental Bank of Commerce which were filed not only with respect to the AYs referred to hereinabove, but also with regard to AY 2012-13. Simultaneously, cross-appeals filed by the appellant/revenue were also disposed of, via the impugned order.
Puneet Rai, senior standing counsel, who appeared on behalf of the appellant/revenue, has helpfully placed a tabular chart before us, indicating therein the issues which arose for consideration in the aforementioned AYs.
On the ground of the depreciation on temporary erections, the Tribunal made the observation that the ground is against the allowance of depreciation on temporary wooden structure at 100% by the CIT(A). The AO has dealt with on facts and the facts have not been disputed that the nature of furniture of wooden cabins, wiring etc. which are temporary in nature. The above ground of the department has to be dismissed as it is a covered matter in favour of the assessee by the order of the Co-ordinate Bench of ITAT in A.Y. 2007-08 in ITA No.1937/Del/11 and 1961 /Del/11. The matter was set aside to the AO for verification by the ITAT.
A Division Bench comprising Justices Rajiv Shakdher and Girish Kathpalia observed that “A perusal of the said decision would show that the appellant/revenue did not raise any ground in the appeal with regard to the allowance of depreciation on temporary wooden structures. Therefore, applying the principle of consistency, in the AYs in issue, the respondent/assessee should have been allowed depreciation on temporary structures. In this regard, no interference is called for with the decision of the Tribunal.”
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