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TMI Blog2017 (8) TMI 244X X X X Extracts X X X X X X X X Extracts X X X X ..... rt that ‘depreciation’, by its very nature and as used in Section 41(1) of the Act, is neither loss, nor expenditure, nor trading liability’. In other words, irrespective of the provision in which the word ‘depreciation’ is used, owing to the very nature of the word, it is not a loss or an expenditure or a trading liability. The Court is satisfied that neither the CIT (A) nor the ITAT has committed any legal error in concluding that for the purposes of Section 10(29) of the Act ‘depreciation’ is not an expense but allowance. No substantial question of law - ITA 584/2017, ITA 585/2017, ITA 587/2017, ITA 588/2017 AND ITA 589/2017 - - - Dated:- 1-8-2017 - MR. S. MURALIDHAR AND MS. PRATHIBA M. SINGH, JJ. For The Appellant : Mr. P. Ro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d . v . DCIT ( 2009 ) 314 ITR 314 . 5. Mr. P. Roychaudhuri, learned counsel appearing for the Revenue, sought to distinguish the aforementioned judgment of the Supreme Court in Nectar Beverages Pvt . Ltd . ( supra ) pointing out that it was in the context of Section 41(1) of the Act which dealt with concept of balancing charge . He submitted that the Supreme Court in the above decision was not examining whether depreciation should be treated as an expense or as an allowance for the purpose of Section 10 (29) of the Act. 6. The Court has examined the decision in Nectar Beverages Pvt . Ltd . ( supra ). Para 11 of the said decision, relevant for the present case, reads as und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stood introduced w . e . f . 1 . 4 . 1988, Section 41 ( 2 ) stood deleted . However, even after 1 . 4 . 1988, the proviso to Section 32 ( 1 )( ii ) continued till 1 . 4 . 1996 when by the Finance ( No . 2 ) Act, 1995 the bottles and crates even below Rs . 5,000 /- came within the block of assets as defined under Section 2 ( 11 ) of the 1961 Act . As stated, this judgment is confined to depreciable assets costing less than Rs . 5,000 /- which did not enter the block of assets during the assessment years in question ( when Section 41 ( 2 ) stood deleted ). ( emphasis in original ) 7. It is evident from the above that the Supreme Court has, while exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C . M . No . 27321 / 2017 ( Exemptions ) in ITA No . 584 / 2017 C . M . No . 27323 / 2017 ( Exemptions ) in ITA No . 585 / 2017 C . M . No . 27327 / 2017 ( Exemptions ) in ITA No . 587 / 2017 C . M . No . 27331 / 2017 ( Exemptions ) in ITA No . 588 / 2017 C . M . No . 27339 / 2017 ( Exemptions ) in ITA No . 589 / 2017 11. Applications are allowed, subject to all just exceptions. C . M . No . 27322 / 2017 ( delay in re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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