9911796707
TMI Blog2014 (1) TMI 81X X X X Extracts X X X X X X X X Extracts X X X X ..... oth these years relates to not allowing depreciation on the sole ground that the depreciation was shown in the statements of account of Universal Exports. 3. Briefly stated the facts of the case are that the assessee is a manufacturer of PP Woven Sacks & Exporters of PP Woven Sacks. During the course of the scrutiny assessment proceedings, while going through the computation of income for the assessment year 2006-07, the Assessing Officer noticed that the assessee has deducted an amount of Rs. 51,80,558/- on account of depreciation of M/s. Universal Exports from the net profit computed as profit and loss account. It was explained that the assessee company is a proprietor of M/s. Universal Exports. The return of income of M/s. Universal Exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Ld. CIT(A) but without any success. The Ld. CIT(A) observed that M/s. Universal Exports has declared a loss of Rs. 26,22,726/- and while computing the said loss, the depreciation of Rs. 51,80,558/- has already been taken into consideration, hence, the assessee is not entitled to claim the same depreciation second time again while computing its own income. 5. Aggrieved by this, the assessee is before us. The Ld. Counsel for the assessee vehemently submitted that for the A.Y. 2005-06 on identical facts, the Ld. CIT(A) has allowed the depreciation in the hands of the assessee and the said decision of the Ld. CIT(A) was accepted by the department as no appeal was preferred before the Tribunal. The Ld. Counsel submitted that now the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or this the profit of the proprietary concern M/s. Universal Exports has to be determined and computed as per its own books of account, therefore, the Revenue authorities have very rightly allowed the depreciation in the hands of M/s. Universal Exports as the same is claimed and debited in the books of account of M/s. Universal Exports. The assessee's right is only over the net profit determined and computed as per the books of M/s. Universal Exports. We find that the assessee has in its own computation of income has computed its income as follows: a) Net profit from Lakshmans Plastics Pvt. Ltd. Rs. 2,08,268/- b) Profit from Prop. Firm M/s.Universal Exports Rs. 7,50,662/- 8. The assessee cannot be allowed once against depreciation from t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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