TaxTMI 
TaxTMI 
2013 (8) TMI 1027
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....ed of by this common order for the sake of convenience. 2. Grounds raised by the assessee in the aforesaid appeals, assessment year-wise are as under:- AY 2005-06 "1. The assessment order u/s 143(3) is bad in law. 2. The learned Assessing Officer has erred on facts and in law in disallowing depreciation on pipelines amounting to Rs. 1,58,20,313/- on the basis of the CIT(A)'s order for A.Y. 2001-02, A.Y. 2002-03 to AY. 2004-05. The CIT(A) has erred in confirming the same. 3. The learned Assessing Officer has erred on facts and in law in disallowing depreciation on telecom system of Rs. 1,67,03,338/- contending that the same was not put to use. The CIT(A) has erred in confirming the same. 4. The learned ....
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....ral in nature, therefore needs no adjudication. 4. Ground No.2 of all the three appeals, regarding disallowance of depreciation on pipelines, is covered against the assessee by the decision of the Tribunal in assessee's own case for the Assessment Years 2001-02, 2002-03, 2003-04 and 2004-05. The Counsel of the assessee submitted that the assessee has claimed depreciation on minimum amount of Rs. 10 crores each which has been committed by the assessee-company to Gujarat Maritime Board and Kandla Port Trust. As the minimum amount was payable by the assesseecompany of Rs. 10 crores each to these two institutions, the amount payable was a contractual liability and therefore the amount was provided for and depreciation on the same was claimed....
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....d the completion certificate of Telecom System from Indian Oil Corporation Limited (IOCL). He further pointed out that the Assessing Officer disallowed the depreciation contending that the completion certificate does not state that the telecom system was put to use and it is not clear that the telecom system is installed and put to use. The disallowance of depreciation is made on the basis of past year's assessment order. He further explained that the CIT(A) confirmed the disallowance of depreciation in Assessment year 2004-05 on the ground that date of put to use of such telecom system was inadvertently mentioned as 30.09.2004 instead of 30.09.2003 in the audit report which falls in Assessment Year 2005-06. This fact has not been considere....
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....law. We are accordingly direct the Assessing Officer to allow the same. We also direct the assessee to furnish the working of depreciation to the Assessing Officer who will verify and allow the same in accordance with law. The ground No.3 in respect of all the three appeals is allowed. 11. Ground No.4 of the Assessment Year 2005-06 is against disallowance of prior period expenses of Rs. 1,56,676/-. The Ld CIT(A) confirmed the disallowance on the ground that the assessee has not furnished any evidence in support of the claim that those expenses were crystallized during the year. Before us also the ld Counsel of the assessee could not produce any evidence in support of the claim that those expenses were crystallized during the year. Theref....