9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (7) TMI 96 - HC - Income TaxWhether in the facts and circumstances of the case the depreciation of the windmills purchased in the same year prior to the date of search should be granted in the regular assessment or the block assessment - in the case of Assistant Commissioner of Income Tax Vs. Kences Foundation (P) Ltd 2004 (10) TMI 19 - HIGH COURT MADRAS this Court had already considered the issue and accepted the case in favour of the assessee the issue regarding the commission of windmill on 30.9.1995 is disclosed in the books of accounts and calls for depreciation under the regular assessment year in view of Section 158BB(1)(d) - Appeal is dismissed
Issues:
1. Whether depreciation of windmills purchased in the same year prior to the date of search should be granted in regular assessment or block assessment. Analysis: The High Court of Madras addressed the issue of depreciation of windmills purchased in the same year prior to the date of search in the context of block assessment years from 1986-1987 to 1996-1997. The Court admitted only the second question of law for consideration, focusing on whether the depreciation should be granted in regular assessment or block assessment. The assessee contended that the income disclosed in regular books of accounts should be considered for regular assessment, leading to the grant of 100% depreciation. The Court noted that the first question regarding the date of commissioning of the windmill was not admitted, and as the issue had attained finality, it became academic for consideration. The Assessing Officer had initially assessed the income for the block period at 60% plus 15% surcharge, restricting the depreciation claimed by the assessee to 50% due to lack of evidence of commissioning before 30.9.1995. However, based on a letter from the Assistant Executive Engineer, the Tribunal accepted the commissioning date as 30.9.1995, similar to a previous case where relief was granted to the assessee. The Court acknowledged the precedent set by a prior case where a similar issue was decided in favor of the assessee. Considering the findings of the Tribunal and the acceptance of the commissioning date by the Court, the issue of depreciation under regular assessment year was deemed not to be a question of law. Therefore, the Tax Case Appeal was dismissed with no costs incurred.
|
