2011 (10) TMI 692 - AT - Income Tax

Summary

Issues involved:
The judgment involves appeals by the assessee and the Revenue for assessment years 2005-06, 2006-07, and 2007-08, challenging orders of the Commissioner of Income tax(Appeals)-III at Chennai, related to depreciation claim, carry forward of loss, bad debts written off, disallowance of non-recoverable deposits, disallowance of conversion charges, and set off of carried forward loss/depreciation.

Assessment Year 2005-06:

Assessee's Appeal (ITA No.794(Mds)/2010):
- The assessee's claim of higher depreciation restricted to additions to leasehold building was confirmed.
- Disallowance of carry forward of loss was confirmed.
- The appeal was dismissed.

Revenue's Appeal (ITA No.832(Mds)/2010):
- Dispute over bad debts written off was decided in favor of the assessee.
- The Revenue's appeal was dismissed.

Assessment Year 2006-07:

Assessee's Appeal (ITA No.795(Mds)/2010):
- Disallowance of non-recoverable deposits and conversion charges confirmed.
- Disallowance of set off of carried forward loss/depreciation confirmed.
- The appeal was not successful.

Revenue's Appeal (ITA No.833(Mds)/2010):
- Dispute over bad debts and non-recoverable advances was partly allowed.
- Disallowance of non-recoverable advances to a group company was restored.
- The Revenue was partly successful in its appeal.

Assessment Year 2007-08:

Assessee's Appeal (ITA No.1427(Mds)/2010):
- Disallowance of non-recoverable deposits and set off of carried forward loss/depreciation confirmed.
- The appeal was dismissed.

In conclusion, the appeals by the assessee for all assessment years and the Revenue for 2005-06 were dismissed. The Revenue's appeal for 2006-07 was partly allowed. The judgment was pronounced on October 13, 2011, at Chennai.