Court affirms assessee's right to choose depreciation claim, dismissing appeal.

The court dismissed the appeal in favor of the assessee, upholding the right of the assessee to choose whether or not to claim depreciation. The court held that the depreciation claim is optional and cannot be imposed if not desired by the assessee, based on settled legal position and precedents. The decision affirmed the principle that authorities were correct in not allowing depreciation that the assessee did not wish to claim, resulting in the appeal being decided against the revenue and in favor of the assessee.

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Issues:
Challenge to judgment of Income Tax Appellate Tribunal regarding depreciation claim.

Analysis:
1. The Commissioner of Income Tax challenged the ITAT's order regarding depreciation in the appellant's return of income.
2. The appellant declared a loss in the return, but the Assessing Officer determined a higher loss by including depreciation not claimed by the assessee.
3. Questions framed for consideration were related to the allowance of depreciation when not claimed by the assessee and the necessity of working out depreciation even in cases of paucity of profits.
4. Both parties presented arguments, with the Revenue conceding that the issue was no longer res integra based on relevant court judgments.
5. The respondent relied on prior court decisions and argued against re-agitating the issue.
6. The court considered previous Division Bench judgments and concluded that the questions raised had already been addressed in those cases.
7. The court analyzed the arguments put forth by both sides and referred to specific legal precedents to support its decision.
8. The court discussed the applicability of various court decisions, including those from the Bombay High Court and the Supreme Court, in determining the outcome of the appeal.
9. The court examined the contentions raised by both counsels and the relevance of prior court decisions to the present case.
10. After thorough consideration, the court held that the depreciation claim is optional for the assessee and cannot be imposed if not desired by the assessee.
11. The court referred to specific provisions of the Income Tax Act and relevant court decisions to support its conclusion.
12. Based on the settled legal position and precedents, the court dismissed the appeal in favor of the assessee, upholding the right of the assessee to choose whether or not to claim depreciation.
13. The court's decision was based on the principle that the authorities were correct in not allowing depreciation that the assessee did not wish to claim.
14. Consequently, the appeal was decided against the revenue and in favor of the assessee, affirming the optional nature of depreciation claims for the assessee.

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