2011 (5) TMI 1107 - AT - Income Tax

Summary

Issues involved: Appeal against order of CIT(A) for Assessment Year 2007-08 regarding rejection of revised claim of depreciation and failure to consider it during assessment proceedings.

Issue 1: Rejection of revised claim of depreciation
The Assessing Officer (AO) noticed that the assessee debited an amount for provision of deferred tax, which was not added back in computation of income for book profits u/s 115JB. The assessee agreed to the addition, resulting in determination of book profits. However, the assessee raised an appeal before CIT(A) stating that the revised claim for depreciation was not considered by the AO. The revised depreciation claim was higher than the original claim. The CIT(A) observed that the AO did not discuss this issue in the assessment order and hence, rejected the claim. The appellant argued that the revised claim was necessitated due to adjustments in finalizing books for AY 2009-10. The CIT(A) cited the decision in Goetz (India) Ltd. case, stating that revised claims must be made through a revised return, not during assessment proceedings. The appellant appealed against this decision before ITAT Ahmedabad.

Issue 2: Dismissal of additional ground in appeal
No additional ground was raised before ITAT. The ITAT dismissed the additional ground for statistical purposes.

Conclusion:
ITAT Ahmedabad allowed the appeal, directing CIT(A) to reconsider the issue of revised depreciation claim in accordance with law and provide sufficient opportunity to both parties. The dismissal of the additional ground was upheld.