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TMI Blog2018 (3) TMI 587X X X X Extracts X X X X X X X X Extracts X X X X ..... ital equipments as scrap nor the Assessee could use the hospital equipments. Therefore, the written down value of the hospital equipments, was to be allowed as depreciation. This is so, provided the hospital equipment (asset) is written off in its books of accounts. This has been admittedly done i.e. writing off from its books. Thus, the nomenclature, as additional depreciation rather then depreciation, is the only objection of the Revenue. Nomenclature, cannot decide a claim. In any case, this could also be allowed as an expenses under Section 37 of the Act as it is an expenditure incurred wholly and exclusively for carrying out its its activity as a hospital (on application of commercial principles). - Decided against revenue - Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equipment has outlived its useful life, then the same should be sold as scrap and in the absence of such evidence, the claim of additional depreciation of ₹ 83.15 lakhs was disallowed. This resulted in addition of the above amount of ₹ 83.15 lakhs while determining the income in Assessment Order dated 18th December, 2009. 4. Being aggrieved by the order of the Assessing Officer dated 18th December, 2009, the Respondent carried the issue in appeal the Commissioner of Income Tax (Appeals) [CIT(A)]. The appeal of the Respondent was allowed by an order dated 15th March, 2011 of the CIT(A) holding that income of the Trust is required to be computed on commercial principles as held by this Court in Institute of Banking Personal S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hinery is discarded/ destroyed in the previous year, the amount of money received on sale as such or as scrap or any insurance amount received to the extent it falls short of the written down value is allowed as depreciation, provided the same is written off in the books of account. In this case, the Respondent-Assessee could not sell the hospital equipments as scrap nor the Assessee could use the hospital equipments. Therefore, the written down value of the hospital equipments, was to be allowed as depreciation. This is so, provided the hospital equipment (asset) is written off in its books of accounts. This has been admittedly done i.e. writing off from its books. Thus, the nomenclature, as additional depreciation rather then depreciat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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