2018 (3) TMI 587

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....al under Section 260A of the Income Tax Act, 1961 (the Act), challenges the order dated 20th October, 2014 passed by the Income Tax Appellate Tribunal (the Tribunal). The impugned order dated 20th October, 2014 is in respect of Assessment Year 2007-08. 2. Revenue urges only the following reframed question of law, for our consideration: "Whether in the facts and in the circumstance of the case an....

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....r, the Assessing Officer held that in case where the asset i.e. hospital equipment has outlived its useful life, then the same should be sold as scrap and in the absence of such evidence, the claim of additional depreciation of Rs. 83.15 lakhs was disallowed. This resulted in addition of the above amount of Rs. 83.15 lakhs while determining the income in Assessment Order dated 18th December, 2009.....

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....ived its life. Further, in terms of Government Rules, the Respondent-Assessee was prohibited from selling such hospital equipments as scrap. Thus, the impugned order dated 20th October, 2014 dismissed the Revenue's appeal by upholding the order dated 15th March of the CIT(A), reiterating the fact that income of the Tribunal has to be completed on commercial principles as held by this Court in ....

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....crap or any insurance amount received to the extent it falls short of the written down value is allowed as depreciation, provided the same is written off in the books of account. In this case, the Respondent-Assessee could not sell the hospital equipments as scrap nor the Assessee could use the hospital equipments. Therefore, the written down value of the hospital equipments, was to be allowed as ....