Tribunal Upholds Depreciation Rate Decision, Rejects Revenue's Appeal

The Tribunal upheld the decision to allow depreciation on project assets at the building rate based on precedent, dismissing the Revenue's appeal. The issue of amortization of project cost was deemed irrelevant and dismissed for statistical purposes. The Tribunal determined that the decision in the assessee's previous case applied, rejecting the Revenue's argument that it was not final due to a pending appeal before the High Court. The Assessing Officer's disallowance of depreciation on project assets was overturned, with the Tribunal directing to allow depreciation on the road at the building rate.

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Issues involved: Appeal by Revenue regarding depreciation on project assets at 10% rate applicable to 'building', and amortization of project cost.

Depreciation on project assets: Revenue contended that Tribunal's decision in assessee's previous case was not final due to pending appeal before High Court. However, Tribunal held that decision in previous case applied as facts remained the same. Assessing Officer disallowed depreciation on project assets, stating assessee was not owner and not eligible for depreciation. However, Tribunal directed to allow depreciation on road at building rate based on similar case precedent. Tribunal dismissed Revenue's appeal, citing lack of evidence of Tribunal's decision reversal by High Court.

Amortization of project cost: As depreciation issue was decided in favor of appellant, this issue became irrelevant and was dismissed for statistical purposes.

Conclusion: Tribunal upheld CIT(A)'s decision to allow depreciation on project assets at building rate, based on precedent, and dismissed Revenue's appeal.

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