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Facts
The assessee's appeal for assessment year 2015-16 was filed against an order by the CIT(A)-NFAC, arising from proceedings under section 154 of the Income-tax Act, 1961. The Assessing Officer invoked rectification jurisdiction to disallow the assessee's claim for higher depreciation.
Held
The Tribunal held that the disallowance of higher depreciation by the Assessing Officer under section 154 was not a rectifiable issue as it involved subjective appreciation of facts. The case of T. S. Balaram ITO v. Volkart Bros was cited.
Key Issues
Whether the disallowance of higher depreciation under section 154 rectification is permissible when it involves subjective appreciation of facts.
Sections Cited
154
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Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI SATBEER SINGH GODARA & SHRI MANOJ KUMAR AGGARWAL
ORDER
Per Satbeer Singh Godara, Judicial Member:
This assessee’s appeal for assessment year 2015-16, arises against the Commissioner of Income Tax (Appeals)-National Faceless Appeal Centre [in short, the “CIT(A)-NFAC”],Delhi’s DIN and order no. ITBA/NFAC/S/250/2022-23/1044211729(1) dated 28.07.2022, involving proceedings under section 154 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
Heard both the parties. Case file perused.
It emerges during the course of hearing that learned Assessing Officer had invoked its section 154 rectification jurisdiction to disallow assessee’s claim of higher depreciation, which is not a rectifiable issue since involving subjective appreciation of the entire facts, in light of T. S.
Balaram ITO v. Volkart Bros (1971) 82 ITR 50 (SC). We, therefore, reverse the learned lower authorities’ impugned rectification process for this precise reason alone. All other pleadings are rendered academic.
This assessee’s appeal is allowed. Order pronounced in the open court on 11TH February, 2025.
Sd/- Sd/- (MANOJ KUMAR AGGARWAL) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 11THFebruary, 2025. *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra
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