2021 (12) TMI 698

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....g, learned Counsel for the assessee did not press ground no. 2. Hence, this ground is also dismissed. In ground no. 3, assessee has challenged the validity of the impugned order on the ground that it has been passed beyond the period of limitation prescribed under section 263 of the Act. Whereas, ground no. 4, 5 and 6 are on merits. 3. Briefly the facts are, the assessee is a resident company engaged in the business of manufacturing of grey fabrics. For the assessment year under dispute, assessee filed its return of income on 24.09.2015 declaring total income of Rs. 43,30,817/-. Subsequently, assessee filed a revised return on 13.09.2017 declaring income of Rs. 42,70,870/-. Assessment in case of the assessee was completed under section 1....

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....imed depreciation and has paid interest were in the name of the Directors, the assessee's claim of depreciation and interest payment cannot be denied when the company for the purpose of its business used the assets. Learned counsel submitted, the assessee purchased the cars in earlier years and depreciation has been allowed on them in the earlier assessment years. He submitted, in the impugned assessment year, the assessee has claimed depreciation on the opening written down value (WDV). Therefore, once depreciation on the assets was allowed in the earlier assessment years, there is no scope for further examination by the AO in the impugned assessment year. Thus, he submitted, on merits also claim of depreciation and interest payment is eli....

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....he motorcars are in the name of the Directors of the company, the assessee, not being the owner, cannot claim depreciation and interest expenditure. However, facts on record reveal that the motorcars on which the assessee claimed depreciation were purchased in the earlier assessment years. On the first car purchased on 12.01.2010 the assessee had started claiming depreciation from assessment year 2010-11 itself. Similarly, for the second car purchased on 04.11.2012, the assessee is claiming depreciation from assessment year 2012-13. For the third car purchased on 15.07.2012, the assessee is claiming depreciation from assessment year 2013- 14. The depreciation so claimed and the interest expenditure on loan availed for purchasing the motorca....