2006 (1) TMI 169

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..... 2003, for the block period 1888-89 to 1998-99. 2. We have heard both sides and perused the records. The assessment in this case has been passed under s. 158BC of the IT Act, on the basis of a search conducted under s. 132 of the IT Act. The assessee had claimed depreciation on the building used for the purpose of business. This claim was disallowed by the AO. However, the learned CIT(A), grante .....

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..... found unexplained at the time of search, to each year, treating it as business income and then claimed depreciation for each year. This is wrong and goes against the principle of s. 132(4) of the IT Act. This aspect is ignored by the CIT(A)." 3. The learned Departmental Representative contended that the case of the assessee does not fall within the purview of s. 139(5) of the IT Act, as the asse .....

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..... submissions and perused the records. At the outset, it is pertinent to note that col. 8 of the preamble to the assessment order describes the nature of the business of the assessee as "deals in dry fruits". The first para of the assessment order reads "in continuation of the search carried oat under s. 132 of the IT Act both in the residence and business premises of the assessee, Mr. N.R. Pandura .....

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..... granting relief to the assessee on depreciation. Though, the assessee did not claim (depreciation) in any of the assessment years prior to search, he is entitled to claim the current depreciation for the block period. In the decision of Tribunal, Pune Bench, in the case of Balaji Construction vs. Asstt. CIT (2000) 66 TTJ (Pune) 718, it has been held that "the provisions of Chapter XIV - B of the I .....

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..... nd report from the AO as well as from the Jt. CIT and after considering each and every detail meticulously granted relief to the assessee. After going through the entire material, we do not find any infirmity in the order of the learned CIT(A), granting relief to the assessee in this issue. The ground raised by the Revenue in this appeal therefore fails. It is ordered accordingly. 7. In the resu .....

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