ITAT Chennai upholds depreciation claim for Port Trust assessee, dismissing Revenue's appeal

The ITAT Chennai confirmed the CIT(A)'s decision to allow the depreciation claim for the Port Trust assessee, dismissing both the Revenue's appeal and the assessee's Cross Objections. The previous case reference and court decisions supported the depreciation claim, leading to the final decision in favor of the assessee. The Cross Objections filed by the assessee were also dismissed as they aligned with the CIT(A)'s order.

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Issues involved: Appeal by Revenue and Cross Objections by assessee against order of CIT(A) regarding depreciation claim under section 143(3) of the Income Tax Act 1961 for assessment year 2008-09.

Revenue's grounds in appeal: Opposed to CIT(A)'s order, questioning depreciation allowance based on various court decisions. Claimed depreciation was double deduction.

Assessee's defense: CIT(A) rightly interfered in disallowance of depreciation. Filed supporting documents.

Assessing Officer's findings: Assessee is a Port Trust. Initially declared income processed under section 143(1). Later, revised statement admitted higher income due to registration under section 12AA with retrospective effect.

Dispute over depreciation claim: Assessing Officer disallowed `.11,56,72,779/- depreciation as double deduction. CIT(A) directed verification of claim's genuineness.

Previous case reference: Similar depreciation issue arose in a previous case for the same assessee. Coordinate Bench upheld depreciation claim based on court decisions and jurisdictional High Court ruling.

Final decision: ITAT Chennai confirmed CIT(A)'s decision to allow depreciation claim. Both Revenue's appeal and assessee's Cross Objections dismissed.

Separate Judgment: Cross Objections filed by assessee dismissed as they only supported CIT(A)'s order.

Conclusion: Appeal and Cross Objections both dismissed, confirming depreciation allowance for the assessee.

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