Generate professional replies to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Step 1 – Issue Identification & Review
The AI analyses your query, notice, order, or uploaded documents and identifies the key issues involved.
• Review the issues identified by the AI • Add, edit, remove, or refine issues as required
Step 2 – Draft Generation
Once you approve the issues, the AI performs issue-wise legal research and prepares a structured draft response.
• Relevant statutory provisions • Judicial precedents and Supreme Court, High Court and other citations • Issue-wise legal analysis • Practical arguments and supporting content • Professionally structured draft ready for further review.
Tribunal allows appeal, directs deletion of depreciation disallowance on office premises. The Tribunal allowed the appeal of the assessee, directing the Assessing Officer to delete the addition made on account of disallowance of depreciation ...
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Provisions expressly mentioned in the judgment/order text.
Tribunal allows appeal, directs deletion of depreciation disallowance on office premises.
The Tribunal allowed the appeal of the assessee, directing the Assessing Officer to delete the addition made on account of disallowance of depreciation claimed on office premises at India Habitat Centre. The Tribunal ruled in favor of the assessee, citing precedents that when there is no segregation of the value of land and building and a composite price is paid, the entire depreciation claim is allowable under section 32 of the Income Tax Act, 1961. The decision was rendered on a virtual hearing on 21st October, 2021.
Issues: 1. Disallowance of depreciation claimed on office premises at India Habitat Centre. 2. Application of section 14A of the Income Tax Act, 1961 for disallowance.
Analysis:
Issue 1: Disallowance of Depreciation The appeal was filed against the order of Ld. CIT(A) affirming the disallowance of depreciation of Rs. 33,98,755 made by the Assessing Officer. The Assessing Officer disallowed the depreciation claimed by the assessee on account of office premises at India Habitat Centre as the title deeds were not executed. The Ld. CIT(A) partly allowed the appeal, deleting the disallowance under section 14A but sustaining the disallowance of depreciation. The Tribunal noted that the Assessing Officer and Ld. CIT(A) relied on earlier decisions to support the disallowance. However, the Tribunal overturned the decision, citing precedents that when there is no segregation of the value of land and building and a composite price is paid, the entire depreciation claim is allowable under section 32 of the Act. The Tribunal directed the Assessing Officer to delete the addition, ruling in favor of the assessee.
Issue 2: Application of Section 14A The Assessing Officer, under section 14A of the Act, made a disallowance of Rs. 1,90,72,214 and further added Rs. 33,98,755 on account of disallowance of depreciation. The Ld. CIT(A) deleted the disallowance under section 14A but sustained the disallowance of depreciation. The Tribunal upheld the deletion of the disallowance under section 14A, as it was not contested by the Revenue. However, the Tribunal directed the deletion of the addition made on account of disallowance of depreciation, following the decision in favor of the assessee based on the lack of segregation of land and building value.
In conclusion, the Tribunal allowed the appeal of the assessee, directing the Assessing Officer to delete the addition made on account of disallowance of depreciation. The decision was pronounced on a virtual hearing on 21st October, 2021, in the presence of both parties.
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