2002 (10) TMI 68 - HC - Income Tax

Court confirms withdrawal of claim for depreciation in revised return validates assessment. Tribunal's decision upheld.

Commissioner of Income-Tax Versus Sree Senhavalli Textiles P. Ltd.

The High Court of Madras held that withdrawing a claim for depreciation in a revised return validates the assessment based on that return. The court ... 'Whether, Tribunal is correct in law in upholding the order of the Commissioner (Appeals) holding that the depreciation should not be allowed to the assessee since he has specifically withdrawn the claim for depreciation by filing revised return?' - For the assessment year 1988-89, no depreciation was required to be allowed if the same had not been claimed. If a claim made in the original return had been given up in the revised return, there was no obligation to consider the claim for depreciation. The Tribunal was therefore right in upholding the order of the Commissioner who had held that the depreciation need not be allowed to the assessee as the assessee had specifically withdrawn the claim made earlier by filing a revised return. - The question is therefore answered against the Revenue. The High Court of Madras ruled that if an assessee withdraws a claim for depreciation in a revised return, the assessment based on that revised return is valid. The court cited a Supreme Court judgment and explained that a subsequent amendment to the Income-tax Act does not affect the earlier court ruling. Therefore, for the assessment year 1988-89, the assessee was not entitled to depreciation as it was withdrawn in the revised return. The Tribunal's decision upholding this was correct. The judgment favored the assessee and went against the Revenue.