BLUE OCEAN RESORTS PRIVATE LIMITED,DELHI vs. ITO WARD 5(1), DELHI

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ITA 4946/DEL/2025Status: DisposedITAT Delhi23 September 2025AY 2018-19Bench: Sh. Satbeer Singh Godara (Judicial Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal observed that the fixed assets in question were acquired in 2014 and had been allowed to form part of the assessee's block of assets. Therefore, the lower authorities could not disallow the depreciation or other relevant expenditure.

What were the facts?

The assessee's appeal pertains to Assessment Year 2018-19. The lower authorities disallowed the assessee's claim for depreciation, interest, and vehicle insurance, totaling Rs. 8,49,637/-, on the grounds that the assessee was no longer continuing its business activity.

What were the issues?

Whether disallowance of depreciation and other expenses is justified when the asset was acquired in an earlier year and allowed to form part of the block of assets.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI

Before: Sh. Satbeer Singh Godara

For Appellant: Ms. Lalitha Krishnamurthy, CA &, Ms. Bhawna Khatri, CA
Hearing: 23.09.2025Pronounced: 23.09.2025

Asstt. Year : 2018-19 Blue Ocean Resorts Pvt. Ltd., Vs Income Tax Officer, 52A, Friends Colony East, Ward-5(1), New Delhi-110065 New Delhi-110002 (APPELLANT) (RESPONDENT) PAN No. AADCB5036D Assessee by: Ms. Lalitha Krishnamurthy, CA & Ms. Bhawna Khatri, CA Revenue by : Sh. Manoj Kumar, Sr. DR Date of Hearing: 23.09.2025 Date of Pronouncement: 23.09.2025 ORDER This assessee’s appeal for Assessment Year 2018-19, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2024-25/1064596082(1) dated 02.05.2024, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”).

2.

Heard both the parties at length. Case file perused.

3.

It emerges during the course of hearing at the outset that both the learned lower authorities have disallowed the assessee’s depreciation claim; interest for and vehicle insurance; involving varying sums totaling to Rs.8,49,637/-, in assessment order as well as in the lower appellate discussion, for the precise reason that it was no more continuing it’s corresponding business activity.

4.

It is in this factual backdrop that the tribunal hereby notices from a perusal of the case records that the assessee had infact acquired the fixed assets in question i.e. the car way back in the year 2014 which has gone un-rebutted from the Revenue side. It is therefore concluded that once the above fixed asset has been allowed to form part of the assessee’s corresponding block of assets, it is no more open for the learned lower authorities to decline either the corresponding depreciation or all other relevant expenditure; and, therefore, the impugned three disallowances herein are directed to be deleted in very terms.

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