2018 (3) TMI 1182 - AT - Income Tax

Addition of depreciation diminution written back claim - Held that - While examining the paper book we find that the amount of ₹ 3.15.748/-, ₹ 12,20,981/- and ₹ 46,35,092/- totaling to ₹ 61,71,821/- has been offered to income in the income tax returns for the assessment years 2006-07 to 2008-09 respectively by treating them as inadmissible expenses. The relevant pages of computation of income as well as the income tax return form support the contention of the assessee. The learned DR failed to controvert any of these facts contended by the learned counsel for the assessee. We, therefore, in the given facts and circumstances of the case and in view of our verification of the relevant documents annexed with the paper book, are of the view that ₹ 61,71,821/- claimed by the assessee as depreciation diminution written back stands already offered to tax in the preceding years as and when provided. We, therefore, find no reason to interfere with the findings of the Commissioner of Income Tax - Decided against revenue

Summary

Issues:
Appeal against deletion of addition in assessment year 2010-11.

Analysis:
The appeal pertains to the deletion of an addition of ?61,71,821 by the Commissioner of Income Tax (Appeals) for the assessment year 2010-11. The Assessing Officer had added this amount to the assessed income of the assessee under section 143(3) of the Income Tax Act. The issue revolved around the claim of deduction on "depreciation diminution written back" by the assessee, which the Assessing Officer deemed unacceptable. The Commissioner of Income Tax (Appeals) observed that the disputed amount had already been offered to tax during the assessment years 2007-08 to 2010-11, and therefore, the addition was deleted.

The revenue, aggrieved by the deletion of the addition, appealed before the Tribunal. The arguments put forth by both sides centered on whether the impugned addition had been offered to tax in earlier years. The learned DR contended that the necessary documents were not produced by the assessee to prove this fact, while the counsel for the assessee demonstrated through relevant documents that the provision in question had indeed been added back to the income in the computation filed with the return of income.

Upon considering the submissions, the Tribunal noted that the alleged amount related to a "depreciation diminution written back claim" which the Assessing Officer had disallowed. The Tribunal upheld the findings of the Commissioner of Income Tax (Appeals) who had detailed that the assessee had made provisions for depreciation diminution of investment written back in previous years and had added back these provisions in the computation of income for those years. The Tribunal concurred that the disputed amount had already been offered to tax in the preceding years, as evidenced by the computation of income and income tax returns for those years.

In conclusion, the Tribunal dismissed the appeal of the revenue, affirming the decision of the Commissioner of Income Tax (Appeals) to delete the addition of ?61,71,821 for the assessment year 2010-11. The Tribunal found no reason to interfere with the findings given the evidence presented by the assessee regarding the treatment of the disputed amount in earlier assessments.