Temporary erection depreciation for hoardings upheld, with 100% allowance maintained and Revenue's challenge rejected.

Hoarding structures were treated as purely temporary erections under Appendix I, Part A, entry (4) of the Income-tax Rules, 1962, so the assessee's claim for 100% depreciation was upheld. The Tribunal declined to accept the Revenue's objection that the structures were too durable, noting consistency with the view taken in the assessee's own earlier case and a similar matter involving a sister concern. It also recorded that the disallowance relating to additions used for more than 180 days lacked merit on the facts found, and the Revenue's appeal failed.

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Issues: Whether hoardings and hoarding structures qualified for 100% depreciation as purely temporary erections under the Income-tax Rules, 1962, and whether the disallowance relating to additions used for more than 180 days was sustainable.

Analysis: Appendix I, Part A, entry (4) permits 100% depreciation for purely temporary erections such as wooden structures. The hoardings in question were held to fall within the assessee's claim, and the Tribunal noted that the Revenue's objection that they were of a more durable nature did not persuade it to depart from the view already taken in the assessee's own case and in a similar case of a sister concern. The Tribunal also found that the disallowance of Rs. 57,73,114 related to hoarding structures used for more than 180 days, and therefore ground 2 lacked merit on the facts recorded.

Conclusion: The claim for 100% depreciation on hoardings was upheld and the Revenue's appeal was rejected.

Final Conclusion: The assessee succeeded on the depreciation issue, and the Revenue's challenge failed in full.

Ratio Decidendi: Hoarding structures treated as purely temporary erections are eligible for 100% depreciation under the applicable depreciation schedule, and a consistent view already accepted in earlier years should ordinarily be followed in the absence of distinguishing facts.

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