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TMI Blog2017 (12) TMI 1836X X X X Extracts X X X X X X X X Extracts X X X X ..... low the depreciation against the income estimated from the contract receipts. However, the income so computed shall not be less than the returned income. Accordingly, the appeal of the assessee is partly allowed. - I.T.A. No.270/Vizag/2016 - - - Dated:- 22-12-2017 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER For the Appellant : Shri G.V.N. Hari, AR For the Respondent : Shri M.K. Sethi, DR ORDER PER D.S. SUNDER SINGH, Accountant Member: This appeal filed by the assessee is directed against order of the Commissioner of Income Tax (Appeals) {CIT(A)}, Rajahmundry vide ITA No.066/2014-15/AC C-1 RJY/2015-16 dated 1.3.2016 for the assessment year 2011-12. 2. The brief facts o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee by other parties. The Ld.CIT(A) deleted the addition made on account of rental income and With regard to the interest income the Ld.CIT(A)held that the AO is justified in assessing the interest income separately. 5. Aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before this Tribunal. The assessee the filed original grounds along with appeal memo and subsequently filed the revised grounds of appeal on 20.12.2017 during the appeal hearing. After hearing both the sides, the revised grounds of appeal is admitted and taken up for adjudication. 6. During the appeal hearing, the Ld.AR has argued for depreciation allowance from the estimated income and did not press the other grounds in the revised ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory allowance of depreciation. The Ld. CIT(A) has reduced the estimation of income but did not allow the depreciation. The depreciation is a statutory allowance which require to be allowed by the A.O., as per the decision of Hon ble High Court in the case of Indwell Constructions Vs. CIT and the decision of CIT. vs,. Y.Ramachandra Reddy ITTA No.48/2002 dated 30/07/2014, Hon ble High Court held that even though the A.O. rejected the books of accounts and estimated the income depreciation is allowable unless there is an occasion to disbelieve the purchase of machinery. The only argument in this case made by the assessee was to allow the depreciation. On the similar facts and circumstances, this Tribunal in assessee s own case for the assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome so computed works 4out to less than the income returned by the assesse, then, the total income so computed shall not go beyond the returned income and it should be restricted to the income returned by the assesse, since, the assessed income should not be less than the returned income. 9. In the instant case there is no dispute that facts are similar to that of the assessee s case for the assessment year 2009-10. The Ld. D.R. did not bring any other case law or distinguished the facts of the case. Therefore, respectfully following the view taken by the ITAT for the earlier year in the assessee s own case, we direct the A.O. to allow the depreciation against the income estimated from the contract receipts. However, the income so com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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