2016 (8) TMI 111

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....ER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. By way of this Appeal, the Appellant has challenged the judgment and order dated April 2006 of the Income Tax Appellate Tribunal, Rajkot in I.T.A. No.34/Rjt./2005 for the Assessment Year : 2003-2004 whereby the Tribunal allowed the Appeal preferred by the assessee - respondent and reversed the findings of CIT (Appeals). 2. While admitting the matter ....

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....an be considered as plant and machinery or building for the purpose of granting of depreciation under Sec. 32 of the Income Tax Act, 1961?" 3. Learned Counsel for the appellant - Department has drawn the attention of this Court to the Circular No.1/2009 dated 27.03.2009 wherein Clause 14.1 and 14.2 reads as under :- 14.1 Clause (ii) of sub-section (1) of section 32 provides that deprecation ....

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....hen such persons enjoyed tax exemption. The Incometax Appellate Tribunal in the case of Kandla Port Trust v. Asstt. CIT 104 ITD 01 (Rajkot) has held that in the case of such a previously exempt entity, since there was no liability to tax, there was no occasion to compute the income of such person under the provisions of the Income-tax Act. Hence, the depreciation provided in the books in the years....

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.... (a) the actual cost of the asset shall be adjusted by the amount attributable to the revaluation of such asset, if any, in the books of account of the assessee; (b) the total amount of depreciation on such provided in the books of account of the assessee in respect of such previous year or years preceding the previous year relevant to the assessment year under consideration shal....