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TMI Blog2019 (3) TMI 1983X X X X Extracts X X X X X X X X Extracts X X X X ..... s it can be perused that the assessee purchased the fully constructed building i.e. industrial built up factory and not the land. Therefore, bifurcating the value of land by the Registrar does not specify the value of land and building separately. Therefore, in light of the decision in case of Oswal Agro Mills Ltd. ( 2010 (12) TMI 947 - DELHI HIGH COURT] wherein it is held that it is difficult to maintain the details of each assets separately in respect of the land and building constructions and the same will frustrate the very purpose of the provisions if it is done so. The Hon ble High Court further held that it is also essential to point that the Revenue is not put to any loss by adopting such method and allowing depreciation as the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) in this case only for the AY 2010-11. Further learned CIT(A) has relied upon the Income Tax Act of 1922 and Judicial Pronouncement which are irrelevant as on date. 2. Disallowance of Rs.3,87,595/- out of depreciation on Building. Learned Commissioner of Income Tax (Appeal) has further erred in law, facts and circumstances of the case by confirming the disallowance of Rs.3,87,5957- out of depreciation on Building. 3. Disallowance of Rs.1,97,723/- out of Vehicle maintenance, Vehicle Depreciation and Telephone Expenses. Learned Commissioner of Income Tax (Appeal) has again erred in law, facts and circumstances of the case by enhancing disallowance from 5% to 10% of Vehicle Repair, Vehicle Depreciation and Telephone Expense amounting t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the net profit rate has marginally declined. The Assessing Officer made addition of Rs.5 lacs by disallowing depreciation of value of land at 10% amounting to Rs. 5 lacs out of total depreciation of Rs. 16,62,903/-. The Assessing Officer also made an addition of Rs. 3,87,595/- out of the balance amount of depreciation claim of Rs. 11,62,903/- which is 33.33% of the depreciation amounting to Rs. 3,87,595/-. The Assessing Officer also made addition of Rs.29,389/- on account of interest on TDS. The Assessing Officer further made addition of Rs. 4,84,256/-as regards late payment of employees contribution of ESI u/s 2 (24) (x) read with Section 36(1)(va) of the Act. The Assessing Officer lastly made disallowance of Rs. 2,03,916/- in respect of e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Ld. DR relied upon the Assessment order and order of the CIT(A). 7. We have heard both the parties and perused the material available on record. The Revenue Authorities continuously allowed depreciation on building in earlier Assessment Years 2009-10, 2010-11, 2012-13 & 2014-15 but specifically change its stand in this particular year as well as in Assessment Year 2013-14 without giving proper reasoning towards the same. Thus, following Rule of Consistency, Ground No.1 is allowed. 8. As regards Ground No.2 relating to disallowance of Rs. 3,87,595/- out of depreciation on building pertaining to rental portion of buildings, the Ld. AR submitted that the building is a separate block of asset for depreciation purpose cannot be segregated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 725/- out of Vehicle Maintenance, the same was enhanced by the CIT(A) without assigning any reasons. The Ld. AR submits that the assessee had produced all the detailed documents maintained by the assessee before the Assessing Officer and nature and the business of the assessee justified the quantum of expenditure under these heads of accounts. The assessee also fulfils all the conditions laid down for allowability of expenditure of residual nature u/s 37(1) of the Act. Thus, the Ld. AR submitted that the expenses are incurred for the business of the assessee and directly spring from carrying out the same and are not capital in nature. 12. The Ld. DR relied upon the orders of the Assessing Officer and the CIT(A). 13. We have heard both the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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