2017 (11) TMI 992

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.... By the impugned order CIT(A) allowed assessee's claim after observing as under:- 6.0. I have carefully examined the facts of the case, the stand taken by the A.O in the assessment order, the grounds of appeal and the written submissions filed by the appellant during the hearing proceedings. 6.1. The A.O. has disallowed the entire depreciation claimed at Rs. 98,11,9647- on the ground that the building/premise at Bandra, purchased in the earlier year, was not used for the purpose of any business activity during the A.Y.2013-14 since there is no credit of any business receipts to the profit and loss account. The A.O. has also observed civil/furniture work etc was going on in the said newly purchased premises and the asset wa....

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....ales (in Rupees) 2010-11 4,04,835 18,83,000/- 2011-12 - 11,35,000/- 2012-13 1,14,500 Nil 2013-14 36,24,395 10,08,300/- 2014-15 30,90,694 42,24,417/-   From above, it is apparent that the appellant has engaged in the business of dealing in paintings and artefacts and the same is going concern. The appellant has also submitted that it had stock of painting as well as other artefacts which had been stored7displayed in the said building premises during the year and it amounted to the use of the building for the business purpose. I find that the appellant's address has been mentioned as 36 Turner Road, Bandra (W) in the purchase bill / tax invoice dated 1.3.2013 relevant to A.Y.20....

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....While allowing the claim for depreciation and other expenses the Hon'ble High Court adjudicated as under; "The Tribunal has referred to the judgments in Capital Bus Setvice (supra), CIT Vs. Refrigeration and Allied Industries Ltd. (supra) & CIT Vs. Panacea Biotech Ltd. (supra) and has applied the ratio laid down therein to the facts of the present case. The ratio in brief is that it is not X necessary that the plant and machinery owned by the assessee should be actually put to use in the relevant accounting year to justify the claim of depreciation and that even if the plant and machinery or other asset is kept ready for use in the assessee's business, the assessee would, be entitled to depreciation. The only condition is t....

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....Gulabchand Agarwal 267 ITR 768 is based on different facts of the case and is distinguishable. 6.3. In view of above discussion, it is held that the building premise at 36 Turner Road belonging to the appellant was used for the purpose of business during A.Y.2013-14 and the A.O. was not correct in disallowing depreciation of Rs. 98,11,964/-. The A.O. is directed to allow the depreciation claimed as per IT. Act of Rs. 98,11,964/- and recompute the total income. The grounds taken by the appellant are allowed. 4. I have considered rival contentions and found that during the year under consideration the assessee has business receipts in the nature of sales in the preceding as well as subsequent years and it has made purchases during....