PREMIER BOOK CO.,NEW DELHI vs. ACIT, NEW DELHI

The solitary grievance of the assessee is that the CIT(A) erred in confirming the disallowance of depreciation of Rs.2,28,406/- in respect of tenancy rights acquired in respect of the premises used by the assessee wholly and exclusively for the purpose of its business.

Briefly stated the facts of the case are that during the course of the scrutiny assessment proceedings the AO noticed that the assessee has claimed depreciation of Rs.228406/- @ 25% on tenancy rights. The assessee was asked to justify the claim. In its reply the assessee stated that it had claimed depreciation in respect of tenancy rights for the first time in A.Y. 2008-09 and thereafter similar claims were made in subsequent assessment years. It was further pointed out that similar disallowance was made for the first time in A.Y.2010-11. The AO was of the opinion that since similar disallowance was made in earlier assessment years, therefore, proceeded by disallowing Rs.228406/-.

The assessee carried the matter before the CIT(A) but without any success.

We have carefully perused the orders of the authorities below. We find that this Tribunal in A.Y. 2010-11 in order dated 11.08.2021 as allowed the claim of depreciation. The relevant findings of the coordinate Bench read as under :-

Respectfully following the decision of the coordinate Bench (supra) we direct the AO to delete the addition of Rs.228406/-. The appeal filed by the assessee is allowed.

The order is pronounced in the open court on 10.02.2022 in the presence of both the rival representatives.