“opening WDV”

DepreciationSection 43(6)Section 43(6)263 judgments

The decision most relied on for opening WDV is ACIT v. Progressive Constructions Ltd. (92 Taxmann.com 104), cited in 63 judgments on BharatTax.

Leading authorities on opening WDV

ACIT v. Progressive Constructions Ltd.

92 Taxmann.com 104 · 2018 · ITAT

citing judgments

Rights acquired under a concession agreement for highway construction, which generate revenue through toll collections, constitute an 'intangible asset' under section 32(1)(ii) of the Income-tax Act, 1961, eligible for depreciation, typically at 25%. This includes claiming depreciation on the opening Written Down Value (WDV) for such highway projects.

CIT v. Artex Manufacturing Co.

227 ITR 260 · 1997 · Supreme Court

citing judgments

In a slump sale, the slump purchase price cannot be apportioned among individual assets for claiming depreciation, as there is no indication of the price attributable to specific assets out of the total sale consideration.

DCIT v. Toyo Engineering India ltd.

33 Taxmann.com 560 · 2013 · Reported

citing judgments

Depreciation is not allowed on goodwill if it arises from book entries and has no identifiable cost of acquisition. This applies even when goodwill is acquired as part of a scheme of arrangement or amalgamation.

Bodal Chemicals Ltd. v. ACIT, Ahmedabad

112 Taxmann.com 217 · 2019 · ITAT

citing judgments

Once depreciation on an asset is allowed in the first year, the revenue is debarred from denying depreciation on the written-down value carried forward in subsequent years, absent a change in facts or law.

PCIT v. GVK Jaipur Expressway

100 Taxmann.com 96 · 2018 · Supreme Court

citing judgments

The Supreme Court has affirmed that developers of roadways, operating on a Build-Operate-Transfer (BOT) basis, are eligible to claim depreciation on the roads constructed. This decision supports the assessee's claim against the Revenue's challenge.

Judgments citing opening WDV

The Deputy Commissioner of Income Tax, Circle-3(1), Visakhaprtnam vs. Fluentgrid Limited, Visakhapatnam

In the result, appeal of the Revenue is dismissed

ITA 62/VIZ/2021[2017-18]Status: DisposedITAT Visakhapatnam15 Jun 2023AY 2017-18

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

For Appellant: Sri GVN Hari, ARFor Respondent: Sri ON Hari Prasada Rao

Section 142(1)Section 143(2)Section 143(3)Section 14A

intangible as per the provisions of the IT Act, 1961. Further, the assessee also submitted that it has erroneously considered Rs. 12.85 Crs as opening WDV instead of Rs. 6.94 Crs. The assessee therefore requested the Ld. AO to consider this fact and has submitted the revised calculation of depreciation ... Revenue is dismissed. 8. With respect to Ground No.3, regarding allowance of depreciation, the Ld. DR argued that the assessee has taken opening WDV for intangible assets at Rs. 12.85 Crs instead of Rs. 6.94 Crs. Further, the Ld. DR argued that the closing WDV was shown

Dr Deshmukh Mother and Child Care, Ujjain vs. PCIT-1, Indore

ITA 101/IND/2022[2017-18]Status: DisposedITAT Indore15 Jun 2023AY 2017-18

Bench: Ms. Suchitra R Kamble & Shri B.M. Biyaniassessment Year: 2017-18 Dr. Deshmukh Mother & Pr. Cit-I, Child Care, Indore बनाम/ 27, Nirman Nagar, Vs. Ujjain (Appellant / Assessee) (Respondent / Revenue) Pan: Aahfd3407H Assessee By Ms. Ruchira Negi, Ar Revenue By Shri P.K. Mishra, Cit Dr Date Of Hearing 22.03.2023 Date Of Pronouncement 15.06.2023

Section 143(2)Section 143(3)Section 263

also our analysis issue-wise as under: (i) Regarding issue raised in Para No. 3.1 of show-cause notice: Ld. PCIT observed that the Opening WDV of fixed assets of current year was greater than the Closing WDV of immediately preceding year but the AO did not verify the difference ... Audit Report of immediately preceding AY 2016-17 (Paper Book Page No. 116) and demonstrated that the total opening WDV of fixed assets of current year is Rs. 3,97,28,403/- and closing WDV of fixed assets of preceding year was Rs. 3,97,28,383/-; thus

M/S.Atc Telecom Infrastructure Private Limited(Formerly Known As Viom Networks Limited), Mumbai vs. Deputy Commissioner of Income Tax 9(1)(2), Mumbai

In the result, the appeal filed by the revenue is partly allowed

ITA 6148/MUM/2018[2009-10]Status: DisposedITAT Mumbai12 Jun 2023AY 2009-10

Bench: Shir Pavan Kumar Gadale & Shri S Rifaur Rahman, Acountant Member

For Respondent: Smt. Shailja Rai.CIT DR

Section 143(2)Section 250Section 35DSection 40

Commissioner of Income tax (Appeals)-16, Mumbai [briefly "the CIT(A)"] has erred in upholding the disallowance of depreciation on the entirety of the opening WDV of assets acquired during the period November, 2007 to March, 2008. 1.1 That on the facts and the circumstances of the case ... mentioning that the closing WDV in the books of accounts Tata Tele Services was taken over by the assessee company and was disclosed as opening WDV in the books of account. The Assesseing officer dealt on this issue at Para 4.1 to Para 4.5 of the order and made

DCIT 7(3), Mumbai vs. Wyeth Ltd ( Formerly Known As Wyeth Lederle Ltd), Mumbai

In the result, appeal filed by the revenue is dismissed

ITA 3508/MUM/2010[2004-05]Status: DisposedITAT Mumbai09 Jun 2023AY 2004-05

Bench: Shri Vikas Awasthy, Hon’Ble & Shri S. Rifaur Rahman, Hon'Blepfizer Limited V. Acit- Special Range 23 (Earlier Known As Wyeth Lederle Limited) [Now The Dcit-Circle 7(3)] The Capital, G-Block Aayakar Bhavan Bandra Kurla Complex Mumbai- 400020 Bandra (E), Mumbai -400012 Pan: Aaacp3334M (Appellant) (Respondent) Acit- Ltu V. M/S. Wyeth Limited 28Th Floor, Centre - 1 (Formerly Known As Wyeth Lederle Ltd) Rbc Mahindra Towers World Trade Centre 4Th Floor, A- Wing Cuffe Parade, Mumbai Dr G.M. Bhosale Road Worli, Mumbai- 400055 Pan: Aaacw2641Q (Appellant) (Respondent) Assessee Represented By : Shri Vishal Kalra Department Represented By : Smt. Sujatha Iyangar

Section 43(6)Section 80H

against the depreciation claimed by the Assessee in the return of income amounting to INR 2,88,38,771) on the basis of opening WDV as on 1.4.97 as per the assessment order of last year. 41. Aggrieved with the order of the Assessing Officer, assessee preferred an appeal before ... under the Income Tax Act. As per the provision of the Act, section 43(c) explanation 2, the value to be transferred are the opening WDV after reducing the relevant depreciation before transfer of the assets to the demerged company. The value transferred to the subsidiary should be the same

Zodiac Jrd Mkj Ltd, Mumbai vs. Asst Cir 5(3)(2), Mumbai

ITA 836/MUM/2023[2014-15]Status: DisposedITAT Mumbai31 May 2023AY 2014-15

Bench: Shri Prashant Maharishi & Shri Kuldip Singhassessment Year: 2014-15

For Appellant: Ms. Drutika Jain, A.R. &For Respondent: Smt. Sonia Kumar, D.R

Section 111ASection 143(3)Section 2Section 234BSection 50Section 54E

thereby earned a profit of Rs.8,48,99,207/- and worked the profit as per provision of the Act as under: Particulars Amount (Rs) Opening WDV as on 01.04.2013 Office at Panchratna 4,41,013/- Office at BDB with Car parking 1,33,53,769/- 4 M/s. Zodiac

Seaward Exports Private Limited, Kota vs. DCIT-Circle 2, Kota

In the result, the appeal of the assessee is allowed

ITA 271/JPR/2021[2012-13]Status: DisposedITAT Jaipur01 May 2023AY 2012-13

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri Saurav Harsh, AdvocateFor Respondent: Mrs. Monisha Choudhary, Addl. CIT-DR

Section 143(3)Section 271(1)

resultant tax effect comes to meager Rs.4,870/- (needless to mention that the assessee had deducted sale value of Rs.1,05,000/- from its opening WDV as of immediately succeeding year). Similarly, on other side, it had also not deducted profit on sale of assets of Rs.13,865/- from

ACIT, Akola Circle, Akola vs. M/S. Shaheen Frozen Foods, Akola

In the result, appeal of the Revenue is allowed for statistical purpose

ITA 196/NAG/2017[2013-14]Status: DisposedITAT Nagpur13 Feb 2023AY 2013-14

Bench: S.S.Godara & Dr. Dipak P. Ripoteआयकरअपीलसं. / Ita No.196/Nag/2017 िनधा"रणवष" / Assessment Year : 2013-14 The Assistant M/S.Shaheen Frozen Foods, Commissioner Of Income Vs C/O.Syedainuddin Khatib, Tax, Akola Circle, Akola. Syed Pur, Ward No.19, Balapur, Dist.Akola – 444302. Pan: Abtfs 3422 J Appellant/ Revenue Respondent /Assessee

Section 143(3)Section 35A

facts. 3. The learned CIT(Appeals) has gravely erred in not noticing that as per the audited balance sheet as on 31/01/2013 the opening WDV as on 01/04/2012 of land, factory-building, plant & machinery was only Rs.5,00,000/- and had the machineries been replaced after 01/04/2012, the same would ... certainly have been included in opening WDV as on 01/04/2012. 4. Any of the ground that may be taken with the permission of Hon’ble ITAT.” 2. Brief facts: The Assessee is in the business of processing & reselling of Buffallow Meat. The Assessing Officer(AO) has disallowed assessee’s claim

Deputy Commissioner of Income Tax, Circle-3, Jaipur vs. M/S Hanuman Tube Well Co., Jaipur

In the result, the appeal of the Revenue as well as assessee are dismissed

ITA 839/JPR/2019[2014-15]Status: DisposedITAT Jaipur13 Feb 2023AY 2014-15

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri S.L. Jain, Adv &For Respondent: Shri Sanjay Dhariwal, CIT-DR fu/kZkfjrh dh vksj ls@

Section 145(3)Section 2(14)Section 45

depreciation and interest & remuneration to partners, in reference to the profit of business estimated, the depreciation claim from Matasukh Project is based on the opening WDV and was also allowed in the earlier years. The department has neither questioned the claim in the earlier year, no reopened the cases till

M/S. Croda India Company Pvt. Ltd, Mumbai vs. The Pr. Comm of Income Tax, Mumbai-6

In the result, the appeal of the assessee is allowed

ITA 1439/MUM/2022[2017-18]Status: DisposedITAT Mumbai23 Dec 2022AY 2017-18

Section 143(3)Section 14ASection 263Section 32Section 32(1)Section 32(1)(ii)Section 35Section 43(6)

allowed’. Since assessee has started claiming depreciation on Goodwill from A.Y. 2012-13 onwards, the closing WDV as on 31/03/2016 was taken as the opening WDV as on 01/04/2016 at Rs 24,80,50,073/- and depreciation claimed accordingly. It was submitted that there is no discretion available ... change the opening WDV as stated in section 43(6) of the Act. It was also argued that once an asset forms part of any block of asset, the said asset loses its individual identity and the WDV of the said asset cannot be independently determined as it had already

M/S Toyota Kirloskar Motors (P) Ltd, Bangalore vs. The Assistant Commissioner of Income Tax Ltu Circle-1, Bangalore

In the result, the appeal of the assessee is partly allowed for statistical purposes

ITA 150/BANG/2017[2012-13]Status: DisposedITAT Bangalore02 Dec 2022AY 2012-13

Bench: Smt. Beena Pillai & Shri Laxmi Prasad Sahu

For Appellant: Sri Padam Chand Khincha, A.RFor Respondent: Sri Sunil Kumar Singh, D.R

Section 40A(2)

assets were acquired and put to use during the year under consideration. d. Not appreciating the fact that reversal amount is reduced from opening WDV on gross basis thereby even reversing the depreciation. 18. The lower authorities have erred in: a. Disallowing

M/S United Breweries Ltd, Bangalore vs. Deputy Commissioner of Income Tax Circle-7(1)(1), Bangalore

In the result, the appeal filed by the assessee is partly allowed

ITA 481/BANG/2018[2012-13]Status: DisposedITAT Bangalore11 Nov 2022AY 2012-13

Bench: Shri George George K, Jm & Ms.Padmavathy S, Am

For Appellant: Sri.K.R.Vasudevan, AdvocateFor Respondent: Sri.K.Sankar Ganesh, JCIT –DR

Section 115JSection 143(2)Section 143(3)Section 14ASection 40Section 43B

return of income filed had claimed an amount of Rs.3,73,88,587 as depreciation on ‘goodwill’ at the rate of 25% on the opening WDV of goodwill of Rs.14,95,54,349. The assessee had acquired a brewery, namely, ‘Karnataka Breweries and Distilleries Limited’ through a process of demerger

ITO 28 )(2)(3), Navi Mumbai vs. M/S N G Group, Navi Mumbai

In the result, the appeal of the learned Assessing Officer is dismissed and the appeal of the assessee is partly allowed

ITA 6748/MUM/2019[2011-12]Status: DisposedITAT Mumbai01 Nov 2022AY 2011-12

Bench: Shri Amit Shukla, Jm & Shri Prashant Maharishi, Am M/S Ng Group Ito, 28(2)(3) Plot No.8, Sector 11, Opp R. No. 310, 3 Rd Floor, Juinagar Rly Station, Vashi Rly Station Complex, Vs. Vashi Navi Mumbai Sanpada, Mumbai-400 703 Navi Mumbai–400 709 (Respondent) (Appellant) Pan No. Aaffn9159E M/S Ng Group Ito, 28(2)(3) Plot No.8, Sector 11, Opp R. No. 310, 3 Rd Floor, Juinagar Rly Station, Vashi Rly Station Complex, Vs. Sanpada, Vashi Navi Mumbai Mumbai-400 703 Navi Mumbai–400 709 (Respondent) (Appellant) Pan No. Aaffn9159E Assessee By : Ms. Nishita Mandalaywala, Ar Revenue By : Dr. Mahesh Akhade, Cit Dr Date Of Hearing: 04.08.2022 Date Of Pronouncement: 01.11.2022

For Appellant: Ms. Nishita Mandalaywala, ARFor Respondent: Dr. Mahesh Akhade, CIT DR

Section 36(1)(ii)Section 41(1)Section 68

interest income incorrectly. The learned CIT (A) held that cost of construction of plot no.807 was ₹9,61,07,165/- . It has an opening WDV of ₹8,93,13,797/-, on which the expenditure during the year was incurred of ₹67,93,368/-. This project was sold

Reliance Industries Ltd., Mumbai vs. Asstt. CIT-CC-3(4), Mumbai

In the result, appeal by the Revenue is dismissed

ITA 579/MUM/2021[2016-17]Status: DisposedITAT Mumbai14 Oct 2022AY 2016-17

Bench: Shri Pramod Kumar, Vice Preside & Shri Sandeep Singh Karhail

For Appellant: Shri Nimesh Vora a/wFor Respondent: Shri Chetan M. Kacha, Sr. AR

Section 115JSection 143Section 144C(3)Section 14ASection 250Section 250(6)Section 32Section 92CSection 92C(3)

vide corrigendum order dated 02.04.2008. Disallowance of Depreciation 4. erred in confirming the disallowance of depreciation of Rs.3,28,689/- on the opening WDV of capitalized value of goods purchased from P.K. Agarwal Group concerns Viz (Durga Iron & Steel Ltd. and Surajbhan Rajkumar ... appeal is allowed. 12. The issue arising in ground No. 4, raised in assessee’s appeal, is pertaining to disallowance of depreciation on the opening WDV of capitalised value of goods. 13. The brief facts pertaining to this issue are: For the year under consideration, assessee’s claim of depreciation

ACIT -3(4), Mumbai vs. Reliance Industries Ltd, Mumbai

In the result, appeal by the Revenue is dismissed

ITA 1438/MUM/2021[2016-17]Status: DisposedITAT Mumbai14 Oct 2022AY 2016-17

Bench: Shri Pramod Kumar, Vice Preside & Shri Sandeep Singh Karhail

For Appellant: Shri Nimesh Vora a/wFor Respondent: Shri Chetan M. Kacha, Sr. AR

Section 115JSection 143Section 144C(3)Section 14ASection 250Section 250(6)Section 32Section 92CSection 92C(3)

M/S. India Medtronics Pvt.Ltd., Baroda vs. The Dy.CIT., Circle-1(2), Baroda

In the result, similarly the Assessee’s appeal is partly allowed

ITA 480/AHD/2011[2005-06]Status: DisposedITAT Mumbai30 Sept 2022AY 2005-06

Bench: Shri Amit Shukla & Shri Gagan Goyal

For Appellant: Sh. Rajan R. Vora with Sh. Nikhil TiwariFor Respondent: Dr. Yogesh Kamath/ Akhtar Hussain Ansari

Section 234BSection 271Section 274Section 92C

appeal No. 61 is allowed”. 58. Therefore, following the consistent view of the Tribunal, we direct the Assessing Officer to allow depreciation on the opening WDV of the non– compete fee. This ground is allowed. 59. The assessee has raised additional ground no. 21, claiming deduction in respect of education

Novartis India Ltd, Mumbai vs. Addl CIT RG 7(1), Mumbai

In the result, appeal filed by the assessee is partly allowed as stated above

ITA 7644/MUM/2012[2008-09]Status: DisposedITAT Mumbai28 Sept 2022AY 2008-09

Bench: Shri Amit Shukla, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blem/S. Novartis India Limited Addl. Cit, Range 7(1) V. Aayakar Bhavan, M.K. Road Sandoz House, Dr. Annie Besant Road Worli, Mumbai - 400018 Mumbai Pan: Aaach2914F Appellant Respondent Assessee Represented By : Shri Rajan Vora & Shri Pranay Gandhi Revenue Represented By : Shri Rajneesh Yadav

Section 144C(5)Section 35DSection 92C(2)

finality in assessee’s favor in AY 2000-01 wherein it have been held that the assessee would be eligible to claim depreciation on opening WDV of block of assets and the explanation 2A to Sec.43(6) would have no application. The Ld. DR has submitted that the revenue

Alta Leasing & Finance Limited, Mumbai vs. Dy CIT Circle 6 (1), Mumbai

In the result the appeal of the revenue stand dismissed

ITA 801/MUM/2003[1996-97]Status: DisposedITAT Mumbai27 Sept 2022AY 1996-97

Bench: Shri Vikas Awasthy & Shri Amarjit Singh

For Appellant: H.P. MahajaniFor Respondent: Samruddhi Hande

circumstances of the case and in law, the CIT(A) erred in deleting the disallowance of depreciation of Rs 2,71,77,981/-on opening WDV of the assets without appreciating the fact that these transactions are held as mere finance transactions and the assessee is not entitled ... therefore, this ground of appeal of the revenue stand dismissed. Ground No. 13: Disallowance of depreciation of Rs.2,71, 77,981/- on opening WDV of the assets: 6 Appeals 25 Alta Leasing & Finance Limited Vs. DCIT, Circle-6(1) 26. During the course of assessment the A.O had disallowed

DCIT, Cir 6(1), Mumbai vs. Alta Leasing & Finance Ltd, Mumbai

In the result the appeal of the revenue stand dismissed

ITA 1806/MUM/2003[1996-97]Status: DisposedITAT Mumbai27 Sept 2022AY 1996-97

Bench: Shri Vikas Awasthy & Shri Amarjit Singh

For Appellant: H.P. MahajaniFor Respondent: Samruddhi Hande

DCIT.Cir.6 (1), Mumbai vs. M/S Alta Leasing & Finance Ltd, Mumbai

In the result the appeal of the revenue stand dismissed

ITA 3686/MUM/2002[1997-98]Status: DisposedITAT Mumbai27 Sept 2022AY 1997-98

Bench: Shri Vikas Awasthy & Shri Amarjit Singh

For Appellant: H.P. MahajaniFor Respondent: Samruddhi Hande

Alta Leasing & Finance Ltd, Mumbai vs. Addl, CIT Cent. Cir 6(1), Mumbai

In the result the appeal of the revenue stand dismissed

ITA 3634/MUM/2002[1998-99]Status: DisposedITAT Mumbai27 Sept 2022AY 1998-99

Bench: Shri Vikas Awasthy & Shri Amarjit Singh

For Appellant: H.P. MahajaniFor Respondent: Samruddhi Hande