Tribunal upholds CIT(A)'s decisions on interest-free loans & depreciation.

The Tribunal dismissed the department's appeal, upholding the decisions of the ld. CIT(A) on both issues. The addition on account of interest-free loans to sister concerns was deleted based on a previous judgment in favor of the assessee by the High Court. Additionally, depreciation was allowed without a revised return as the claim was not new and was supported by the tax audit report. The Tribunal affirmed that the decisions of the ld. CIT(A) were justified, resulting in the dismissal of the department's appeal.

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Issues:
1. Deletion of addition on account of interest-free loan to sister concerns.
2. Allowing depreciation without filing a revised return.

Analysis:

Issue 1: Deletion of addition on account of interest-free loan to sister concerns
The department appealed against the order of the ld. CIT(A) regarding the deletion of an addition on account of interest-free loans given to sister concerns by the assessee. The ld. Counsel for the assessee argued that the issue was similar to a previous judgment of the Hon'ble Jurisdictional High Court in the assessee's own case for the assessment year 2010-11. The Hon'ble High Court had already decided against the revenue in a similar matter, as mentioned in the order dated 08.08.2017. The departmental appeal for the assessment year 2010-11 was dismissed by the High Court, concluding that the addition on account of interest expenditure deletion was not justified. The Tribunal found that the issue had been settled by the High Court in favor of the assessee, and therefore, upheld the decision of the ld. CIT(A) to delete the addition.

Issue 2: Allowing depreciation without filing a revised return
The department contested the allowance of depreciation by the ld. CIT(A) without the assessee filing a revised return. The AO had disallowed the depreciation claim, stating that no revised return had been filed. The assessee argued that the claim for depreciation was not new and was included in the tax audit report under Form 3CD. The ld. CIT(A) allowed the depreciation claim, citing the judgment of the Hon'ble Punjab & Haryana High Court in the case of CIT Vs Ramco International. The Tribunal noted that the claim for depreciation was inadvertently omitted in the computation of income but was included in the tax audit report attached to the income tax return. The Tribunal upheld the decision of the ld. CIT(A) to allow the depreciation claim, as it was not a new claim and was supported by relevant material in the tax audit report. Therefore, the appeal of the department was dismissed, and the decision of the ld. CIT(A) was upheld.

In conclusion, the Tribunal dismissed the department's appeal on both issues, affirming the decisions of the ld. CIT(A) regarding the deletion of addition on interest-free loans and the allowance of depreciation without filing a revised return.

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