2023 (2) TMI 1372 - HC - Income Tax

Calcutta HC Upholds ITAT's Order: Allows 30% Depreciation, Dismissing Revenue's Appeal Under Sec 260A of Income Tax Act.

COMMISSIONER OF INCOME TAX KOLKATA Versus M/s. BOTHRA SHIPPING SERVICES

The HC of Calcutta dismissed the revenue's appeal under Section 260A of the Income Tax Act, 1961, upholding the ITAT's order allowing 30% depreciation ... Revision u/s 263 - Depreciation in terms of Section 32 @ 30% - Tribunal's order allowing depreciation at 30% instead of 15% - HELD THAT:- CIT in restricting the depreciation at 15% is unlawful and could not have been done by invoking the power u/s 263 - Tribunal had considered the factual position which was not in dispute; took note of the decisions of Bose Abraham Vs. State of Kerala [2001 (2) TMI 890 - SUPREME COURT] and Gaylord Constructions [2009 (8) TMI 1156 - KERALA HIGH COURT], Gujco Carriers [2002 (2) TMI 48 - GUJARAT HIGH COURT], Sanco Trans Ltd [1996 (12) TMI 120 - ITAT MADRAS-C], Gujarat Tube Well Co. [1992 (1) TMI 140 - ITAT AHMEDABAD-C] and Hindustan Construction Co. [1988 (9) TMI 71 - ITAT AHMEDABAD-A] and held that the assessing officer had correctly allowed the claim of depreciation u/s 32 applying the rate of 30%. Tribunal took note of the undisputed questions of fact and applied the judicial precedent and affirmed the order passed by the assessing officer. Decided against the revenue. The High Court of Calcutta dismissed the revenue's appeal under Section 260A of the Income Tax Act, 1961. The appeal was against the Income Tax Appellate Tribunal's order allowing depreciation at 30% instead of 15%. The Court upheld the Tribunal's decision, citing relevant judicial precedents. The appeal was dismissed, and the substantial question of law was answered against the revenue.