https://www.taxtmi.com/caselaws?id=462946 The ITAT Delhi dismissed the Revenue's appeals challenging the CIT(A)'s orders for AYs 2004-05 and 2005-06. The tribunal upheld the allowance of 100% depreciation on temporary structures erected by the assessee on land not owned by it, recognizing these as purely temporary erections removable upon contract completion. The assessee's claim was supported by facts that the structures had no earth foundation, were used temporarily for contractual purposes, and the cost was borne by the assessee. Regarding the provision for bund maintenance, the tribunal held the provision was a legitimate business liability estimated on a rational basis following accepted accounting principles and AS-7. Reliance was placed on Supreme Court and HC precedents allowing deductions for accrued liabilities maintainable on mercantile accounting. Consequently, both issues were decided in favour of the assessee, and the Revenue's appeals were dismissed. en-us Fri, 21 Sep 2012 00:00:00 +0530 Sat, 26 Jul 2025 10:38:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462946 The ITAT Delhi dismissed the Revenue's appeals challenging the CIT(A)'s orders for AYs 2004-05 and 2005-06. The tribunal upheld the allowance of 100% depreciation on temporary structures erected by the assessee on land not owned by it, recognizing these as purely temporary erections removable upon contract completion. The assessee's claim was supported by facts that the structures had no earth foundation, were used temporarily for contractual purposes, and the cost was borne by the assessee. Regarding the provision for bund maintenance, the tribunal held the provision was a legitimate business liability estimated on a rational basis following accepted accounting principles and AS-7. Reliance was placed on Supreme Court and HC precedents allowing deductions for accrued liabilities maintainable on mercantile accounting. Consequently, both issues were decided in favour of the assessee, and the Revenue's appeals were dismissed. Case-Laws Income Tax Fri, 21 Sep 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462946