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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: Shri Kul Bharat, Hon’ble & Shri Manish Borad, Hon’ble
per P&L account at the time of filing the return for A.Y.
2009-10.
7.2 For the F.Y. 2007-08 ‘provision for depreciation on
investment’ had been made of Rs. 11,20,981/- which
had been added back by the appellant in its
ACIT vs. Bhopal Coop. ITA 45/2017
computation of income to the profit as per P&L account
at the time of filing the return for A.Y. 2008-09. For F.Y.
2006-07 this provision for depreciation on investment
had been made of Rs.3,15,748/- which had been
added back by the appellant in its computation of
income to the profit as per P&L account at the time of
filing the return for A.Y. 2007-08. The provision made
by the appellant under this head of ‘provision for
depreciation on investment’ for the F.Y. 2006-07, 2007-
08, 2008-09 and 2009-10 adds up to Rs.62,71,821/-
which has been added back by the appellant in his
computation of income while filing the returns for the
respective assessment years.
Thus, looking to the total facts of the case, it is
seen that the appellant has made a total provision
under the head ‘depreciation diminution of investment 9
ACIT vs. Bhopal Coop. ITA 45/2017
written back’ of Rs.62,71,821/- from the A.Y. 2007-08
to 2010-11. In all these years, it has added back this
provision at the time of filing of return as can be seen
from the computation of income for these years. During
this assessment year also i.e. A.Y. 2010-11, the
appellant has a made a provision of Rs.1,000,000/-
which has been suo moto added back by the appellant
in its computation of income. Looking to the totality of
the facts and circumstances, the contention of the
appellant is accepted and the addition made by the
A.O. of Rs. 62,71,821/- during this assessment year
2010-11 is hereby deleted. This ground of appeal is
allowed.
In the result, the appeal is partly allowed”
ACIT vs. Bhopal Coop. ITA 45/2017 8. Even during the course of hearing, while examining
the paper book we find that the amount of Rs.3.15.748/-,
Rs.12,20,981/- and Rs.46,35,092/- totaling to
Rs.61,71,821/- has been offered to income in the income
tax returns for the assessment years 2006-07 to 2008-09
respectively by treating them as inadmissible expenses. The
relevant pages of computation of income as well as the
income tax return form support the contention of the
assessee. The learned DR failed to controvert any of these
facts contended by the learned counsel for the assessee.
We, therefore, in the given facts and circumstances of the
case and in view of our verification of the relevant
documents annexed with the paper book, are of the view
that Rs.61,71,821/- claimed by the assessee as
“depreciation diminution written back” stands already
offered to tax in the preceding years as and when provided.
We, therefore, find no reason to interfere with the findings
ACIT vs. Bhopal Coop. ITA 45/2017 of the Commissioner of Income Tax (Appeals) and
accordingly uphold the same.
In the result, the appeal of the revenue stands
dismissed.
Pronounced in open Court on 20th March, 2018.
Sd/- sd/-
(KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER
20 March, 2018 Dn/- Copy to – Appellant/Respodent/Pr.CIT/CIT(A)/DR/Guard File By order Private Secretary