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TMI Blog2022 (2) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... 5,286 are temporary structures such as model house, project office, marketing office, storage of building material, etc. It is further stated in the Architect's letter that these were demolished immediately after the completion of the project. In the petition for admission for additional evidence, the assessee states that the assessee was under the bona fide belief that its explanation, ledger extracts and submissions would be sufficient to allow the claim. It was stated that for interest of justice and equity since the additional evidence goes to the root of the issue, the same may be admitted on record. We find that the additional evidence now sought to be admitted goes to the root of the issue. Therefore, for substantial cause and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Income Tax (Appeals) erred in law and on facts in holding that the expenditure incurred is capital in nature even though such asset does not have enduring benefit in nature. 4. Without prejudice to the above grounds, the learned Commissioner of Income Tax (Appeals) erred in law and on facts in allowing depreciation at 10% even though the life of the structure is less than 3 years. Each of the above grounds is without prejudice to one another, the appellant seeks the leave of the Hon'ble Income Tax Appellate Tribunal, Bangalore to add, delete, amend or modify otherwise each of any of the grounds either before or at the time of hearing this appeal. 3. The brief facts of the case are as follows: The assessee is a pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eads as follows:- 4.4 Under significant accounting policies in the financials of the appellant, it is mentioned in point 1.5 that temporary structures (including sample homes site offices, stores etc are) are depreciated over the life of the project for which they are constructed. Admittedly, the life of the project is 3 to 4 years. It is observed that sample homes, offices and staff quarters constructed with regular construction material such as bricks, cement and steel can be considered as assets having self-life of several years and have enduring benefit to the appellant. Hence, it cannot be disputed that the construction raised by the appellant had life of more than a year and even if it has to be dismantled after the construction/c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not earned any enduring benefit and the same ought to be allowed as a revenue expenditure. It was further submitted that allowing depreciation of 10% on an asset which has life span for less than 3 years is not in accordance with law. 6. The learned Departmental Representative, on the other hand, submitted that if the additional evidence is admitted, necessarily, the same needs to be examined by the A.O., in the interest of justice and equity. 7. We have heard rival submissions and perused the material on record. The assessee has filed additional evidence in the form of a certificate of the Architect which clearly states that the expenditure incurred on construction amounting to ₹ 1,75,55,286 are temporary structures such as mo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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