High Court affirms depreciation on Floor Space Index & intangible assets for 2007-2008 assessment year.

The High Court dismissed the revenue's appeal regarding the allowance of depreciation on Floor Space Index (FSI) and intangible assets for the assessment year 2007-2008. The Court held that no substantial question of law arose from the Tribunal's decision, affirming the Tribunal's allowance of depreciation on both FSI and intangible assets.

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Issues:
1. Allowance of depreciation on Floor Space Index (FSI) as an asset.
2. Allowance of depreciation on intangible assets.

Issue 1: Allowance of depreciation on Floor Space Index (FSI) as an asset

The appeal before the High Court was filed by the revenue under section 260A of the Income Tax Act, 1961, against the order passed by the Income Tax Appellate Tribunal for the assessment year 2007-2008. The specific question raised was whether the Tribunal was justified in allowing depreciation on Floor Space Index (FSI) without considering that additional FSI does not constitute an asset until the construction is completed. During the hearing, it was noted that a similar issue had been addressed in a previous case related to the same assessee. The High Court relied on a previous decision regarding the assessment year 2006-2007 and concluded that no substantial question of law arose from the Tribunal's order. Consequently, the High Court dismissed the appeal by holding that no substantial question of law was present in this regard.

Issue 2: Allowance of depreciation on intangible assets

The second question raised in the appeal was whether the Tribunal was justified in allowing depreciation on intangible assets claimed by the assessee. During the hearing, it was acknowledged that a similar issue had been addressed in a previous case involving the same assessee. The High Court referred to a previous decision and noted that it had already been determined that the matter did not involve a substantial question of law. Therefore, the High Court dismissed the appeal on this issue as well, following the precedent set in the earlier case. The High Court concluded that no substantial question of law arose from the Tribunal's order regarding the allowance of depreciation on intangible assets.

In conclusion, the High Court, consisting of Ujjal Bhuyan and Milind N. Jadhav, JJ., dismissed the appeal filed by the revenue concerning the allowance of depreciation on Floor Space Index (FSI) and intangible assets for the assessment year 2007-2008. The Court held that no substantial question of law arose from the Tribunal's order on both issues and, therefore, there was no basis for overturning the Tribunal's decision.

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