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2014 (5) TMI 110 - ITAT DELHIDisallowance of claim of 100% depreciation – Temporary constructions - Restriction of depreciation @10% on boundry wall - Addition u/s 2(24)(x) r.w.s. 36(1)(va) of the Act - Payment of PF/ESI beyond the time-limit - Penalty u/s 271(1)(c) of the Act – Held that:- The assessee is a concern of a big industrial group which has team of tax expert and auditors at its disposal - Very few cases are selected for scrutiny, others are accepted as these are filed by the assessee - Had there been no scrutiny of the assessment, this claim which was ex-facie not tenable could have been allowed on these items and assessee could have got the benefit of 100% depreciation for the year where it does not deserve - the finding of the CIT (A) cannot be accepted that the assessee has disclosed all material facts - The assessee has rather claimed depreciation on these structures which are not covered by the table of rates at which the depreciation is admissible @ 100% under Income-tax Rules where only purely temporary structures, such as, wooden structures deserve for 100% depreciation - The second finding of the CIT (A) is that it was a legal claim and even if it is ultimately found to be legally unacceptable, it cannot amount to furnishing of inaccurate particulars. It was not a legal claim - Claim of depreciation @ 100% is purely based on facts as it depends on type of structure - It is purely a case of ex-facie untenable claim of depreciation @ 100% which cannot be said to be a legal claim - the CIT (A)'s findings with regard to the claim on temporary buildings were not correct – thus, there was no merits in the CIT (A) for deleting the penalty on the issue of depreciation of temporary buildings in both the Assessment Years 2002-03 and 2003-04 - with regard to the claim of depreciation on boundry wall and disallowance of PF/ESI u/s 36(1)(va) read with section 2(24)(x) of Income-tax Act, 1961 in Assessment Year 2002- 03 - no penalty u/s 271(1)(c) of the Act can be levied on the assessee – Decided partly in favour of Assessee.
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