M/S. SANYA HOSPITALITY PVT. LTD.,NEW DELHI vs. DCIT, NEW DELHI

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ITA 3259/DEL/2015Status: DisposedITAT Delhi17 August 2023AY 2010-1114 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that depreciation on land is not allowable as it is not an asset eligible for depreciation under Section 32. The issue of carry forward of unabsorbed depreciation was remanded for de-novo adjudication.

What were the facts?

The assessee claimed carry forward of unabsorbed depreciation and depreciation on land. The Assessing Officer disallowed these claims, which were upheld by the CIT(A). The assessee appealed to the ITAT.

What were the issues?

Whether depreciation on land is allowable and whether unabsorbed depreciation can be carried forward when the return is filed belatedly.

Which sections of the Income-tax Act were involved?

Section 32,Section 139(3),Section 139(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘B’: NEW DELHI

For Appellant: Mr. Baldev Raj and Sh. Manish Upneja, CAs
Hearing: 07/08/2023Pronounced: 17/08/2023

per Section 32 of the Act.

14.

In so far as, the judicial pronouncements relied by the assessee are concerned, since, the assessee himself has bifurcated the value of the land and the building during the registration of conveyance deed and the stamp duty & 3208/Del/2015 Sanya Hospitality Pvt. Ltd. vs. ITO has been collected by State Government based on the circle rate on the value of the land and the building which are identifiable separately, the judicial pronouncements relied by the assessee are not applicable to the present case, Thus, we find no merit in the Ground No. 2 of the assessee, accordingly, we dismiss the Ground No. 2 of the assessee.

12.

The assessee has not pressed the Ground No. 3, accordingly, Ground No. 3 is dismissed not pressed.

13.

In the result, the Appeal of the assessee in (A.Y 2010-11) is partly allowed for statistical purpose.

ITA No. 3208/DEL/2015 A.Y 2011-12

1.

14. Even in the present appeal, the Ground No. 1 is regarding rejection of claim of carry forward of unabsorbed depreciation. Considering the fact that the assessee had not specified loss claimed by the assessee as either business loss or unabsorbed depreciation in the return filed by the assessee, since, we have remanded the similar issue to the file of the A.O. in Assessment Year 2010-11, finding the parity, the issue involved in the Ground No.1 of the present Appeal is also remanded to the file of the A.O. for de-novo adjudication with a direction to the assessee to substantiate its claim of unabsorbed depreciation, accordingly Ground No. 1 of the assessee is partly allowed for statistical purpose. & 3208/Del/2015 Sanya Hospitality Pvt. Ltd. vs. ITO 15. The Ground No. 2 is regarding disallowance of depreciation on land computed by the A.O. by estimating the cost of land out of the total consolidated cost of hotel building complex. We have already dealt with the said issue for the Assessment Year 2010-11 in Ground No. 2 in Assessment Year 2010-11, by finding the parity and applying the law, mutatis mutandis applies to AY 2011-12 and we find no merit in Ground No. 2, accordingly, the Ground No.2 of the Assessee is dismissed.

16.

The assessee has not pressed the Ground No. 3, accordingly, Ground No. 3 of the assessee is dismissed that as not pressed.

17.

In the result, Appeal in (A.Y 2011-12 is partly allowed for statistical purpose.

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