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TMI Blog2025 (3) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 263 of the Income-tax Act, 1961 [hereinafter referred to as "the Act"], for the Assessment Year 2018-19. 2. The assessee has raised following grounds of appeal:- "1. That on the facts and circumstances of the case and in law, the order dated 13.03.2024 passed by the Principal Commissioner of Income Tax, Ahmedabad-3 [PCIT'] under section 263 of the Income Tax Act, 1961 ('the Act') is without jurisdiction, illegal, bad in law, and liable to be quashed. 1.1. That the PCIT erred on facts and in law in setting aside the assessment order dated 08.11.2021 passed under section 143(3) r.w.s. 144C and 144B of the Act holding the same to be erroneous and prejudicial to the interest of Revenue and directing the assessing officer t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ances of the case and in law, the PCIT erred in holding that the appellant has claimed and is allowed excessive depreciation to the extent of Rs. 23,40,03,327 in the original assessment. 2.1. That the PCIT erred in law in holding that the appellant was required to deduct the remaining 10% [50% of 20%] of the additional depreciation relating to assets acquired and put to use for less than 180 days in the preceding year, from the opening written down value (WDV) of the block for the year under consideration, and general depreciation @15% be computed on reduced WDV. 2.2. That the PCIT erred on facts and in law in not appreciating that the alleged computation/ adjustment of depreciation is contrary to provisions of the Act, particularly sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Scrutiny under CASS and scrutiny assessment u/s 143(3) r.w.s. 144C r.w.s 144B of Act was completed on 08.11.2021 determining income at Rs. 50,43,61,446/- under normal provisions of the Act and Book Profit of Rs. 207,85,71,276/- u/s 115JB of the Act. 4. The issue : The Ld. PCIT has sought to revise the assessment order dated 08.11.2021 passed by the assessing officer under section 143(3) r.w.s 144C(3) and 144B of the Act on the ground that the same was erroneous in so far as prejudicial to the interests of the Revenue, inasmuch as the Assessing Officer has failed to examine the claim of depreciation made by the assessee as a consequence of claiming brought forward additional depreciation of Rs. 156,00,22,181 from earlier assessment year 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 32(1 )(ii) of the Act. A working of the total depreciation charged during the year under consideration is tabulated as under:- S.No. Block of assets Plant and Machinery Rate (%) 15 30 40 (i) (ii) (iii) 3a Written down value on the first day of previous year 14,19,66,02,772 - 3b Written down value on the first day of previous year, of those block of assets which were eligible for depreciation @ 50%, 60% or 80% as per the old Table - - 23,10,31,519 4 Additions for a period of 180 days or more in the previous year 1,33,91,27,790 - 3,08,38,247 5 Consideration or other realization during the previous year out of 3 or 4 - - - 6 Amount on which depreciation at full rate to be allowed (3a+3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which included additional depreciation of Rs. 156,00,22,181 pertaining to assets put to use for less than 180 days in the preceding assessment year 2017-18. The aforesaid depreciation, it is submitted, was computed in accordance with income tax return utility prescribed by CBDT. The Ld. PCIT, in the impugned order, however held that the assessee should, at first, have reduced the additional depreciation pertaining to AY 2017-18 from the WDV as on 01.04.2017 and then computed the normal depreciation @ 15% for the year under consideration. As a consequence thereof, the Ld. PCIT has alleged that the assessee has claimed excess normal depreciation for the year under consideration. In this regard, we hold that the aforesaid method of computation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dditions for a period of 180 days or more in the previous year 5. Consideration or other realization during the previous year out of 3 or 4 6. Amount on which depreciation at full rate to be allowed 3+4-5 (enter 0, if result is negative 7. Addition for a period of less than 180 days in the previous year 8. Consideration or other realizations during the year out of 7 9. Amount on which deprecation at half rate to be allowed (7-8) 10. Depreciation on 6 at full rate 11. Depreciation on 9 at half rate 12. Additional deprecaition, if any, on 4 13. Additional depreciation, if any, on 7 14. Additional deprecaition relating to immediately preceidng year on asset put to use for less than 180 days 15. Total depreciation (10+11+1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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