2012 (8) TMI 662 - AT - Income Tax

Disallowance of depreciation while computing the income in accordance with the Sections 11 to 13 of the Income Tax Act, 1961 Held that - Similar issues were considered by Tribunal in assessee s own case wherein the Tribunal decided the issue of allowability of depreciation on the capital asset in favour depreciation allowed

Summary

Issues:
Deletion of disallowance of depreciation while computing income in accordance with Sections 11 to 13 of the Income Tax Act, 1961.

Analysis:
The Appellate Tribunal ITAT, Hyderabad, addressed three appeals by the Revenue against a common order by the CIT(A)-IV, Hyderabad for the assessment years 2002-03, 2004-05, and 2005-06. The issues revolved around the deletion of disallowance of depreciation while calculating income under Sections 11 to 13 of the Income Tax Act, 1961. The Tribunal noted that similar matters were previously considered in other cases, including ITA Nos. 807 to 809/H/2010 and ITA No.1769/Hyd/2008. In those cases, the Tribunal had ruled in favor of the assessee regarding the allowability of depreciation on capital assets, citing that the judgment of the Hon'ble Supreme Court in the case of Escorts India Ltd. was not applicable to the present case. Consequently, the Tribunal decided to dismiss the Revenue appeals based on the precedent set by previous judgments.

The Tribunal's decision to dismiss the Revenue appeals was influenced by the consistent rulings in previous cases where similar issues were addressed. The Tribunal referred to its own orders in other cases to support its decision, emphasizing that the judgment of the Hon'ble Supreme Court in a specific case was not relevant to the present matter. By aligning with the precedents established in earlier judgments, the Tribunal maintained consistency in its approach to the issue of depreciation disallowance under Sections 11 to 13 of the Income Tax Act, 1961.

In conclusion, the Appellate Tribunal ITAT, Hyderabad, dismissed all three appeals filed by the Revenue in ITA Nos.1304 to 1306/Hyd/2010 concerning the deletion of disallowance of depreciation while computing income in accordance with Sections 11 to 13 of the Income Tax Act, 1961. The Tribunal's decision was based on the consistent rulings in previous cases and the lack of applicability of a specific Supreme Court judgment to the present matter. The orders were pronounced in open court on 28.12.2010, bringing closure to the appeals in question.