2022 (2) TMI 432

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....rejudicial to the interests of the appellant, is bad and erroneous in law and against the facts and circumstances of the case. 2. That the learned Commissioner of Income Tax (Appeals) erred in law and on facts in holding that the expenditure of Rs. 1,57,99,757/- for construction of temporary structure is not eligible for deduction on the ground that the structure is not made of wood. 3. That the learned Commissioner of Income Tax (Appeals) erred in law and on facts in holding that the expenditure incurred is capital in nature even though such asset does not have enduring benefit in nature. 4. Without prejudice to the above grounds, the learned Commissioner of Income Tax (Appeals) erred in law and on facts in allow....

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....her held by the A.O. that when the asset is used for three to four years, it cannot be called as a temporary structure. Accordingly, the A.O. allowed depreciation at the rate of 10% and excess depreciation claimed at Rs. 1,57,99,757 was disallowed. 4. Aggrieved, the assessee filed an appeal to the first appellate authority. The CIT(A) confirmed the view taken by the Assessing Officer. The relevant finding of the CIT(A) reads as follows:- 4.4 Under significant accounting policies in the financials of the appellant, it is mentioned in point 1.5 that temporary structures (including sample homes site offices, stores etc are) are depreciated over the life of the project for which they are constructed. Admittedly, the life of the proj....

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....assessee has filed a petition to admit additional evidence. The additional evidence which is sought to be admitted is a certificate of the Architect. It is stated that the construction on which 100% depreciation has been claimed is temporary structure and the same has been demolished at the fag-end of the completion of the project. The learned AR submitted that by incurring expenditure on these temporary structures the assessee has not earned any enduring benefit and the same ought to be allowed as a revenue expenditure. It was further submitted that allowing depreciation of 10% on an asset which has life span for less than 3 years is not in accordance with law. 6. The learned Departmental Representative, on the other hand, submitted tha....