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TMI Blog2015 (4) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... n these circumstances, the AO’s reluctance to give credence to the revised certificate of the Auditor is not at all sustainable. Moreover, on the basis of the facts of the case it emerges that assessee has acquired the assets under slump sale with effect from April 1, 2002. In these circumstances, there is no plausible reason why April, 25, 2002 would be mentioned as date on which the assets are put to use. Ld. CIT(A) is correct in observing that the main purpose of taking the undertaking of slump sale basis is to enable such undertaking to run after transfer of the going concern. Hence, if the undertaking has been taken on slump sale, no prudent businessman would leave the undertaking remain idle for so many months, when it is capable of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers. However, the allowable depreciation is ₹ 98.88 lacs only, as the computers worth ₹ 329.92 lacs acquired during previous year were put to use for less that 180 days as certified by the auditors of the company. Thus AO opined that the assessee had claimed an excess depreciation of ₹ 98.88 lacs, as during the year the auditor of the assessee had certified that the assets including computer amounting ₹ 392.62 have been put to use for a period less than 180 days. The assessee was required to explain as to why the excess depreciation claimed by the assessee may not be withdrawn. The assessee in its reply dated 27.10.2010 submitted as under:- (i) The assessee has acquired unit of Amber Networks India Private Limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... With reference to our Report (in Form No. 3CB) dated November 26, 2003 on the financial statements of Nokia India Private Limited (the company) for the Assessment year 2003-04, we have verified the books and records of the company and certify as under:- The following fixed assets included in Annexure II(a) of the aforesaid report represent fixed assets acquired as a part of the STPI Undertaking of Amber Networks (India) Private Limited taken over by the Company with effect from April 1, 2002 (the date of the slump sale as certified by the management and by another firm of independent chartered accountants in their report in Form No. 3CEA dated January 3, 2003). The approval of the transfer of STPI undertaking of Amber Networks Privat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e any conclusive or independent evidence which could prove that assets have been put to use have more than 180 days, beyond the fact of slump sale was executed on 1.4.2002. Accordingly, AO held that depreciation is restricted to 98.88 lacs only as against the claim of depreciation 199.97 lacs, as per I.T. Act. 5. Upon assessee s appeal Ld. CIT(A) considered the issue and held as under:- I have gone through the submission of the appellant and also certificates of CA and auditor filed by the appellant. It is to be noted that the AO verified the date of put to use of assets from Tax Audit Report which is certified by the auditor (in which, however, there was a typographical error and the dates of put to use and entry in ERP system of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ters worth ₹ 329.92 lacs, AO inferred that they were put to use for less than 180 days as certified by the auditors of the company. When enquiry was made in this regard, assessee replied that all assets acquired under slump sale were put to use with effect from April 1, 2002. In the Tax Audit Report, however, by way of typographical error, the date of capitalization date (the date on which entry was made in ERP System of accounting) and date of put to use were interchanged for the above mentioned assets and therefore, the date reflected in put to use was shown as December 25, 2002 as against April 1, 2002. In this regard, revised certificate from the auditor dated 25.1.2007 was also filed. In these circumstances, in our considered opi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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