M/S CENTURY GALAXY DEVELOPERS LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-2(1)(1), BANGALORE

Per Jason P Boaz, Accountant Member

2.1 The assessee, a company engaged in the business of maintenance of Apartments, filed its return of income for Assessment Year 2013-14 on 28.09.2013 declaring loss of Rs.(-) 6,15,62,779/-. The case was selected for scrutiny for this Assessment Year and the assessment was concluded under section 143(3) of the Page 2 of 4 Income-tax Act, 1961 (in short ‘the Act’) vide order dated 24.03.2016 wherein the assessee’s income was assessed at (-)Rs.1,69,35,259/- in view of the disallowance of the assessee’s claim of depreciation on building amounting to Rs.4,46,27,520/-. On appeal, the CIT(A)-2, Bangalore, dismissed the assessee’s appeal vide order dated 30.10.2018.

3.1 Aggrieved by the order of CIT(A)-2, Bangalore, dated 30.10.2018 for Assessment Year 2013-14, the assessee filed this appeal wherein it has raised the following grounds:-

Page 3 of 4 3.2 The only issue raised in the grounds preferred in this appeal (supra), related to the disallowance of the assessee’s claim of depreciation on buildings. In the course of hearing the learned AR for the assessee fairly conceded that the issue for adjudication is squarely covered against the assessee by the decision of the Co-ordinate Bench of this Tribunal in the assessee’s own case for Assessment Year 2011-12 in dated 03.06.2016 (copy placed on record); by following the decision of Co-ordinate Bench in the assessee’s own case for Assessment Year 2003-04 in ITA No.999/Bang/2013. The learned AR submitted that the assessee has preferred appeals before the Hon’ble Karnataka High Court, against the aforesaid orders of the Tribunal (supra), which are pending disposal.

3.3.1 After having heard the rival submissions and perusal of the material on record, we find that the issue of the assessee’s claim of depreciation on buildings is squarely covered against the assessee by the decisions of the Co-ordinate Benches of this Tribunal in the assessee’s own case for Assessment Years 2011-12 and 2003-04. Respectfully following the decision of the Co-ordinate Bench of this Tribunal in the assessee’s own case for Assessment Year 2011-12 in dated 03.06.2016, we uphold the orders of the authorities below in disallowing the assessee’s claim of depreciation on buildings. Consequently, the grounds raised by assessee are dismissed.

Order pronounced in the open court on this 19th day of July, 2019.