2016 (12) TMI 1194 - HC - Income Tax

Disallowance of depreciation on plant and machinery - Held that - Having heard and considering the fact that in the earlier orders with respect to the very plant and machinery learned tribunal set aside the order passed by the Assessing Officer in making disallowance of depreciation on plant and machinery and nothing is on record that with respect to the said orders any contrary decision is taken i.e. whether the assessee in fact did not make use of the plant and machinery, when in the subsequent year 2009-10 the learned tribunal has set aside the order passed by the Assessing Officer in making disallowance of depreciation on plant and machinery, it cannot be said that the learned tribunal has committed any error, which calls for the interference of this Court in appellate jurisdiction. As such, no substantial question of law arise in the present Tax Appeal. - Decided in favour of assessee.

Summary

Issues:
Disallowance of depreciation on plant and machinery for Assessment Year 2009-10.

Analysis:
The High Court was approached with an appeal challenging the order of the Income Tax Appellate Tribunal (ITAT) which had allowed the assessee's appeal and set aside the disallowance of depreciation on plant and machinery for the Assessment Year 2009-10. The main question of law proposed was whether the ITAT was justified in deleting the disallowance of depreciation amounting to ?7,72,10,093 on plant and machinery. The Court considered the arguments presented and noted that in earlier orders relating to the same plant and machinery, the ITAT had set aside the Assessing Officer's decision to disallow depreciation. Since there was no evidence to suggest that the plant and machinery were not used by the assessee, the Court found no error in the ITAT's decision for the year in question. Consequently, the Court held that no substantial question of law arose in the present Tax Appeal.

In conclusion, the High Court dismissed the appeal, stating that based on the facts and reasons provided, there was no basis for interference in the decision of the ITAT to delete the disallowance of depreciation on plant and machinery for the Assessment Year 2009-10.