2016 (1) TMI 310

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.... rate of 100% on the temporary structure. 2. Brief facts of the case are that the assessee is engaged in the business of servicing of computers, computer peripherals and telecommunication products and trading of telecommunication products. The assessee has filed its return admitting total income of Rs. 3,20,66,880/-. The case of the assessee was processed under section 143(1) of the Income Tax Act, 1961 ["Act" in short]. Subsequently, on verification of the records, the Assessing Officer issued notice under section 154 of the Act to rectify the wrong claim of 100% depreciation on interiors, non-add back of fees to ROC, provision for gratuity and leave encashment but the assessee has objected to the rectification on the claim of 100% depr....

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....t Rs. 3,22,34,230/- and disallowed various claims of the assessee. 3. The assessee carried the matter in appeal before the ld. CIT(A). After considering the submissions of the assessee, the ld. CIT(A), by following his own order for the later assessment year 2008-09 in ITA No. 381/2010-11/A-I dated 24.03.2014, dismissed the ground raised by the assessee with regard to the disallowance of depreciation at the rate of 100% on temporary structure in the lease premises. The said order of the ld. CIT(A) for the later assessment year 2008-09 was carried to the ITAT vide I.T.A. No. 1369/Mds/2014 and the Tribunal passed order on 18.03.2015 confirming the order of the ld. CIT(A). 4. Now, the assessee is in appeal before the Tribunal for the ass....

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....s business in a rental premises which cannot be used for the business unless the assessee makes it fit for the business. The Assessing Officer, by relying on the decision of the Hon'ble Madras High Court in the case of Indian Metal & Metallurgical Ltd. 141 ITR 40 and the decision of the Hon'ble Bombay v. CIT 30 ITR 338, treated the expenditure incurred by the assessee for improvement in leasehold building as capital expenditure and classified the asset as furniture and fittings, allowed depreciation at the rate of 10% amounting to Rs. 9,983 and disallowed 90% amounting to Rs. 89,844 and added to the taxable income of the assessee. On appeal before the ld. CIT(A), the assessee has filed a detailed written submission and contested aga....

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....hat the assessee derives benefit out of the above renovation works year after year and the benefit derived is of enduring nature for which, the assessee has claimed depreciation at the rate of 100%. However, before us, the assessee has not filed the lease deed document, though the assessee has filed copy of the tax invoice and other bills towards purchase of materials for the above partition/false ceiling works. On perusal of para 4.1 of the order of the ld. CIT(A) and para 2 of the assessment order, we find that there is no clarity on the nature of the asset, on which depreciation at the rate of 100% is claimed. The copy of the Invoice No. DA/63 dated 16.10.2006 relied upon by the ld. Counsel for the assessee only describes the list of ite....