ELIM RESORT PRIVATE LIMITED,BANGALORE vs. INCOME TAX OFFICER, WARD- 3(2)(2), BANGALORE
In the result, appeal of the assessee is allowed
ITA 238/BANG/2022[2016-17]Status: DisposedITAT Bangalore26 Jul 2022AY 2016-17
Bench: Shri N. V. Vasudevanassessment Year :2016-17 M/S. Elim Resorts Pvt. Ltd., Vs. Ito, No.175, Nettigere Village, Ward – 3(2)(2), Uttarahalli Hobli, Bengaluru. Bengaluru – 560 061. Pan : Aadce 0682 J Appellant Respondent Assessee By : Shri. B. S. Balachandra, Advocate Revenue By : Shri. Ganesh R. Ghale, Standing Counsel For Department. Date Of Hearing : 25.07.2022 Date Of Pronouncement : 26.07.2022 O R D E R Per N. V. Vasudevan: This Is An Appeal By The Assessee Against The Order Dated 27.02.2020 Of Cit(A)-2, Bengaluru, Relating To Ay 2016-17. 2. The First Issue Raised By The Assessee Is With Regard To Disallowance Of Depreciation On Buildings Of Rs.3,19,208/-. The Opening Wdv As On 01.04.2014 & As On 01.04.2015 As Per The Books Of Accounts Of The Assessee Was As Follows:
For Appellant: Shri. B. S. Balachandra, AdvocateFor Respondent: Shri. Ganesh R. Ghale, Standing Counsel for Department
Section 32Section 43(1)
working out the share premium in allowing the depreciation. It was submitted that this is not in accordance with the provisions section 43(1)(6) of the Income
Tax Act, 1961 (Act) according to which the actual cost of asset as adjusted for interest payments and forex variations ... after providing for depreciation.
Sec.32 of the Act mandates depreciation to be allowed as deduction on the W
DV as understood under section 43(1)(6) of the Act. The AO therefore could not have tampered with the WDV of the Building Block of Assets based on a valuation report
