Just a moment...

Top
Help
🎉 Festive Offer: Flat 15% off on all plans! →⚡ Don’t Miss Out: Limited-Time Offer →
×

By creating an account you can:

Logo TaxTMI
>
Call Us / Help / Feedback

Contact Us At :

E-mail: [email protected]

Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Make Most of Text Search
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
❮❮ Hide
Default View
Expand ❯❯
Close ✕
🔎 Case Laws - Adv. Search
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text
  • Main Text
  • Main Text + AI Text
  • AI Text
  • Title Only
  • Head Notes
  • Citation
Party Name: ?
Party name / Appeal No.
Include Word: ?
Searches for this word in Main (Whole) Text
Exclude Word: ?
This word will not be present in Main (Whole) Text
Law:
---- All Laws----
  • ---- All Laws----
  • GST
  • Income Tax
  • Benami Property
  • Customs
  • Corporate Laws
  • Securities / SEBI
  • Insolvency & Bankruptcy
  • FEMA
  • Law of Competition
  • PMLA
  • Service Tax
  • Central Excise
  • CST, VAT & Sales Tax
  • Wealth tax
  • Indian Laws
Courts: ?
Select Court or Tribunal
---- All Courts ----
  • ---- All Courts ----
  • Supreme Court - All
  • Supreme Court
  • SC Orders / Highlights
  • High Court
  • Appellate Tribunal
  • Tribunal
  • Appellate authority for Advance Ruling
  • Advance Ruling Authority
  • National Financial Reporting Authority
  • Competition Commission of India
  • ANTI-PROFITEERING AUTHORITY
  • Commission
  • Central Government
  • Board
  • DISTRICT/ SESSIONS Court
  • Commissioner / Appellate Authority
  • Other
Situ: ?
State Name or City name of the Court
Landmark: ?
Where case is referred in other cases
---- All Cases ----
  • ---- All Cases ----
  • Referred in >= 3 Cases
  • Referred in >= 4 Cases
  • Referred in >= 5 Cases
  • Referred in >= 10 Cases
  • Referred in >= 15 Cases
  • Referred in >= 25 Cases
  • Referred in >= 50 Cases
  • Referred in >= 100 Cases
From Date: ?
Date of order
To Date:
TMI Citation:
Year
  • Year
  • 2025
  • 2024
  • 2023
  • 2022
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010
  • 2009
  • 2008
  • 2007
  • 2006
  • 2005
  • 2004
  • 2003
  • 2002
  • 2001
  • 2000
  • 1999
  • 1998
  • 1997
  • 1996
  • 1995
  • 1994
  • 1993
  • 1992
  • 1991
  • 1990
  • 1989
  • 1988
  • 1987
  • 1986
  • 1985
  • 1984
  • 1983
  • 1982
  • 1981
  • 1980
  • 1979
  • 1978
  • 1977
  • 1976
  • 1975
  • 1974
  • 1973
  • 1972
  • 1971
  • 1970
  • 1969
  • 1968
  • 1967
  • 1966
  • 1965
  • 1964
  • 1963
  • 1962
  • 1961
  • 1960
  • 1959
  • 1958
  • 1957
  • 1956
  • 1955
  • 1954
  • 1953
  • 1952
  • 1951
  • 1950
  • 1949
  • 1948
  • 1947
  • 1946
  • 1945
  • 1944
  • 1943
  • 1942
  • 1941
  • 1940
  • 1939
  • 1938
  • 1937
  • 1936
  • 1935
  • 1934
  • 1933
  • 1932
  • 1931
  • 1930
Volume
  • Volume
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
TMI
Example : 2024 (6) TMI 204
By Case ID:

When case Id is present, search is done only for this

Sort By:
RelevanceDefaultDate
    No Records Found
    ❯❯
    MaximizeMaximizeMaximize
    0 / 200
    Expand Note
    Add to Folder

    No Folders have been created

      +

      Are you sure you want to delete "My most important" ?

      NOTE:

      Case Laws
      Showing Results for :
      Reset Filters
      Results Found:
      AI TextQuick Glance by AIHeadnote
      Show All SummariesHide All Summaries
      No Records Found

      Case Laws

      Back

      All Case Laws

      Showing Results for :
      Reset Filters
      Showing
      Records
      ExpandCollapse
        No Records Found

        Case Laws

        Back

        All Case Laws

        Showing Results for : Reset Filters
        Case ID :

        📋
        Contents
        Note

        Note

        -

        Bookmark

        print

        Print

        Login to TaxTMI
        Verification Pending

        The Email Id has not been verified. Click on the link we have sent on

        Didn't receive the mail? Resend Mail

        Don't have an account? Register Here

        <h1>ITAT Upholds Revenue Appeal on Depreciation: Allows on Building, Not Land; Affirms No Underpricing on Jewellery Sales.</h1> <h3>JOINT COMMISSIONER OF INCOME-TAX, SPL. RANGE 4 Versus RAJESH EXPORTS LTD.</h3> The ITAT partially upheld the Revenue's appeal. It affirmed the deletion of the Rs. 1,13,54,683 addition in gross profit on jewellery sales, agreeing with ... Depreciation - value of undivided right in land - Whether the cost of land is entitled to depreciation under the Schedule to the IT Act along with the cost of the building standing thereon - HELD THAT:- On a perusal of the Conveyance Deed, it is seen that the assessee has purchased property on 8-1-1996 from one C.A. Batavia. In the Conveyance Deed, description of the property is given in two schedules. As far as Schedule ‘A’ is concerned, it gives the detailed description of the property in which the total area of the property is shown as 834.40 sq.mtrs. In Schedule B, the property purchased by the assessee is described by the boundaries in which it is stated that undivided right and interest in the site equivalent to 216 sq.mtrs. have been sold to the assessee. Depreciation is allowable only on the value of superstructure on the land and not on the value of land. The legal principles laid down by the Hon’ble Supreme Court in the case of Alps Theatre [1967 (3) TMI 6 - SUPREME COURT] still holds good. Even u/s 32 of the IT Act, 1961, the word used is ‘building’ and building is to be interpreted the superstructure. Though it is vehemently argued by the learned counsel for assessee that the purchase price of land was a composite one and for the sake of convenience, the price of land and price of building was separately shown, we are afraid that his contention can be accepted. As far as the Conveyance Deed is concerned, consideration paid by the assessee for land is shown separately. If the transaction was composite one, then no distinction at least in the consideration paid to the vendor would have been made. We are of the opinion that as there is a clear-cut identity in respect of price paid to the land and building, the Assessing Officer was right in allowing depreciation only on the building. The CIT(A) was not justified in directing the Assessing Officer to allow depreciation on the cost of land as the same is not contemplated u/s 32 of the Act. In the result, we set aside the order of the CIT(A) on this issue and restore that of the Assessing Officer. In the result, the revenue’s appeal is partly allowed. Issues:1. Addition of gross profit on the sale of jewellery2. Allowance of depreciation on the value of undivided right in landAnalysis:Issue 1: Addition of Gross Profit on the Sale of JewelleryThe appeal by the Revenue challenged the deletion of an addition of Rs. 1,13,54,683 in gross profit on the sale of jewellery to M/s. Rajesh Associates. The Assessing Officer observed a significant decrease in the GP rate and questioned the cost of import of gold and jewellery sold to M/s. Rajesh Associates. The Revenue argued that the sale was at a lower price compared to the cost incurred by the assessee, leading to a loss. However, the CIT(A) found no evidence of underpricing and highlighted that market rates fluctuate. The CIT(A) also noted that M/s. Rajesh Associates reported substantial profit, indicating no profit siphoning. The ITAT concurred with the CIT(A) and upheld the deletion of the addition, emphasizing the lack of evidence supporting the Revenue's claims.Issue 2: Allowance of Depreciation on the Value of Undivided Right in LandThe second issue revolved around the alleged depreciation on the cost of land. The Revenue contended that depreciation should only apply to the building, not the land. The conveyance deed showed a separate consideration for the land and building portions. The ITAT analyzed legal precedents and clarified that depreciation is applicable to tangible assets like buildings, not land. Despite the composite nature of the transaction, the distinct pricing for land and building in the deed led to the conclusion that depreciation could only be allowed on the building. Consequently, the ITAT set aside the CIT(A)'s decision and upheld the Revenue's appeal on this issue.In conclusion, the ITAT partially allowed the Revenue's appeal, supporting the deletion of the addition in gross profit on jewellery sales but overturning the allowance of depreciation on the cost of land.

        Topics

        ActsIncome Tax
        No Records Found