M/S SANGEETHA MOBILES PVT LTD,BANGALORE vs. ADDLI COMMISSIONER OF INCOME TAX RANGE-12, BANGALORE

PDF · subscribers
ITA 720/BANG/2017Status: DisposedITAT Bangalore28 November 2018AY 2010-113 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(A)'s order, agreeing that depreciation is allowable at 50% for assets acquired and put to use for less than 180 days in the financial year.

What were the facts?

The assessee acquired assets, including interiors, from another company. The assessee claimed depreciation on these interiors. The CIT(A) allowed depreciation at 50% as the assets were put to use for less than 180 days.

What were the issues?

Whether depreciation is allowable at the full rate or 50% when assets are acquired and put to use for less than 180 days in a financial year.

Which sections of the Income-tax Act were involved?

Section 32

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BENGALURU BENCH B, BENGALURU

Before: SHRI. A. K. GARODIA

For Appellant: Shri. V. Srinivasan, Advocate

Heard together (2 matters)

ITA.720/Bang/2018
I.T.A No.720/Bang/2017

Read from the judgment's own cause title. This page is filed under one of them.

PER LALIET KUMAR, JUDICIAL MEMBER :

1.

The present appeal is filed by the assessee against the order of the CIT (A) -6, Bengaluru, dt.27.01.2017, for the assessment year 2010-11, on the following effective ground :

ITA.720/Bang/2018 Page - 2

2.

The learned CIT (A) is not justified in sustaining the disallowance of a sum of Rs.8,90,704/- being the depreciation on interiors claimed by the appellant forming part of the acquisition of the assets and business of M/s. Wave Communication under the facts and in the circumstances of the appellant’s case. 02. At the outset, the Ld. AR has drawn our attention to paras 5 and 6 of the order of the CIT (A), which read as under :

5. In this context, it is noted that the appellant had capitalised assets taken over by it from Wave Communications to the extent of Rs.1,79,59,105/-. The appellant had filed a letter from Wave Communications dated 03/02/2010 wherein it was stated that a sum of Rs.1,18,76,051/- was paid for interiors of various shops acquired by appellant from Wave Communications. Items acquired by appellant from Wave Communications included computers, tables, chairs, air- conditioners, laptops etc., 6. In this context, it may be noted that the said furniture and fixtures were put to use by appellant for less than 180 days since the same were acquired on 03/02/2010. As per 2nd Proviso of section 32, deduction on depreciation will be allowable @ 50% only on eligible assets if assets / furniture & fixtures acquired during the relevant financial year are put to use for less than 180 days during the relevant financial year. 03. On the other hand the Ld. DR relies upon the order passed by the CIT (A).

4.

We have heard the rival submissions and perused the material on record. The CIT (A) has allowed the depreciation to the extent of 50% as the assets were acquired on 03.02.2010, which was less than 180 days and therefore the assessee was entitled to the depreciation at the rate of 50% only and not at the rate claimed by the assessee, in the appeal before us. We find justification in the action of the CIT (A) and hence we uphold the order of the CIT (A).

ITA.720/Bang/2018 Page - 3

5.

In the result, appeal of the assessee is dismissed.

Order pronounced in the open court on 28th day of November, 2018.

More judgments on Section 32

All 2,762 judgments and leading authorities on Section 32 →

Recent GST High Court judgments

Search GST case law →