https://www.taxtmi.com/caselaws?id=752295 ITAT Delhi allowed the assessee's appeal regarding deduction under section 80IAB on disallowed depreciation for water-use rights. The revenue disallowed depreciation claiming water-use rights are not capital assets as the right neither diminishes nor enhances. However, ITAT held that disallowance leading to profit enhancement makes such enhanced profits eligible for section 80IAB deduction, supported by CBDT Circular 37/2016. The tribunal directed the Assessing Officer to allow the deduction and provide consequential relief. en-us Fri, 03 May 2024 00:00:00 +0530 Mon, 06 May 2024 10:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752295 ITAT Delhi allowed the assessee's appeal regarding deduction under section 80IAB on disallowed depreciation for water-use rights. The revenue disallowed depreciation claiming water-use rights are not capital assets as the right neither diminishes nor enhances. However, ITAT held that disallowance leading to profit enhancement makes such enhanced profits eligible for section 80IAB deduction, supported by CBDT Circular 37/2016. The tribunal directed the Assessing Officer to allow the deduction and provide consequential relief. Case-Laws Income Tax Fri, 03 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752295