9911796707
TMI Blog2014 (2) TMI 656X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs.13800/- out of salary paid to employees without proper appreciation of the facts and circumstances of the case. 3. That the order of the CIT(A) as well as the AO is against the law and facts of the case. 4. That the assessee craves right to add or delete any of the grounds of appeal." 2. As regards ground no.1, the brie facts are that the assessee had purchased an immovable property for Rs.5,30,570/- on 17.05.2005 in respect of which he had claimed depreciation amounting to Rs.53,057/- in the return of income. Since the property purchased included land and building, the AO was of the view that depreciation was to be allowed only for the value of the building and not for the land. He asked the assessee to give the value of the land ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... over a period of time, whereas a permanent asset does not undergo any change with time. There does appear to be some merit n the appellant's contention that where the assessee purchases an immovable property consisting of land and building together, without bifurcations of the value of each, depreciation should be allowed in respect of the entire purchase consideration as it would be difficult to bifurcate the cost of acquisition into and that of land and the building. However, I am of the view that where it is possible to reasonably allocate the cost of acquisition between that of building and of land, the depreciation should be allowed only after making such allocation, on the value of the building so determined. Depreciation is allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the superstructure and n allowing depreciation only in respect of the cost of the superstructure is rightly upheld. In such facts and circumstances, we do not find any infirmity in the order of the Ld. CIT(A). Thus, ground No.2 of the assessee is allowed. 7. As regards ground No relating to confirmation of disallowance of Rs.1,38,000/-, the brief facts of the case are that the assessee had claimed an expenditure of Rs.5,64,000/- on account of salary in the profit and loss account. The AO asked assessee to submit the person wise details of salary paid to produce the vouchers for the same. The AO noted that the vouchers in respect of Deepak, Hitesh and Prince were unsigned. The amount of salary debited in their names was Rs.1,38,000/-. W ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
