BLUE OCEAN RESORTS PRIVATE LIMITED,DELHI vs. ITO WARD 5(1), DELHI
Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI
Before: Sh. Satbeer Singh Godara
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”).
Heard both the parties at length. Case file perused.
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. Blue Ocean Resorts Pvt. Ltd.
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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.
This assessee’s appeal is allowed. Order Pronounced in the Open Court on 23/09/2025. (Satbeer Singh Godara)
Judicial Member
Dated: 23/09/2025
*Subodh Kumar, Sr. PS*