ITO, WARD - 15(3), KOLKATA, KOLKATA vs. M/S. INDIAN JUTE MACHINERY RESEARCH & DEVELOPMENT, KOLKATA

- This Revenue’s appeal for assessment year 2013-14 arises from Commissioner of Income Tax (Appeals)-5, Kolkata’s order dated 31.03.2017 passed in case No.524/CIT(A)-5/Wd-15(3)/150-16 reversing Assessing Officer’s action disallowing assessee’s depreciation claim of ₹2,06,05,390/-, in assessment order dated 04.03.2016 involving proceedings u/s 143(3) of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file perused.

The Revenue’s sole substantive grievance pleaded in the instant appeal is that CIT(A) has erred in law as well as on facts in deleting the impugned depreciation disallowance of ₹2,06,05,390/-. Learned Addl. CIT-DR invites our attention to CIT(A)’s order deleting the impugned addition as follows:- “I have perused the assessment order and the submission of the A/R. The reason given by the AO for disallowance of depreciation is that the claim of depreciation this year has its base in the previous year relevant to AY 2012-13 being prior to the current. AY 2013-14. There is no other reason by the AO for the said disallowance