TaxTMI 
TaxTMI 
2019 (3) TMI 1983
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....he case by sustaining the disallowance of Rs.5,00,000/- out of depreciation on Building as depreciation on land made by learned Assessing Officer. Learned CIT(A) has reversed the decision of his own court by disagreeing with the view taken by the earlier CIT(A) in this case only for the AY 2010-11. Further learned CIT(A) has relied upon the Income Tax Act of 1922 and Judicial Pronouncement which are irrelevant as on date. 2. Disallowance of Rs.3,87,595/- out of depreciation on Building. Learned Commissioner of Income Tax (Appeal) has further erred in law, facts and circumstances of the case by confirming the disallowance of Rs.3,87,5957- out of depreciation on Building. 3. Disallowance of Rs.1,97,723/- out of Vehicle maintenance, Vehicl....
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....fit Net Profit Net Profit% 2009-10 16,04,80,168 2,43,61,859 80,63,858 5.02 2010-11 25,77,18,566 2,79,89,723 78,61,390 3.05 Thus, the Assessing Officer observed that there was increase in the turnover and gross profit rate over the last year, but the net profit rate has marginally declined. The Assessing Officer made addition of Rs.5 lacs by disallowing depreciation of value of land at 10% amounting to Rs. 5 lacs out of total depreciation of Rs. 16,62,903/-. The Assessing Officer also made an addition of Rs. 3,87,595/- out of the balance amount of depreciation claim of Rs. 11,62,903/- which is 33.33% of the depreciation amounting to Rs. 3,87,595/-. The Assessing Officer also made addition of Rs.29,389/- on account of interest on....
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..... AR submitted that in earlier assessment year as well as in subsequent Assessment Years, the same has been allowed on building by the Revenue Department and there is a change of opinion/stand in this particular year as well as in Assessment Year 2013-14. 6. The Ld. DR relied upon the Assessment order and order of the CIT(A). 7. We have heard both the parties and perused the material available on record. The Revenue Authorities continuously allowed depreciation on building in earlier Assessment Years 2009-10, 2010-11, 2012-13 & 2014-15 but specifically change its stand in this particular year as well as in Assessment Year 2013-14 without giving proper reasoning towards the same. Thus, following Rule of Consistency, Ground No.1 is allowed.....
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....levant Assessment Year. The assessee's case is squarely covered by the decision of the Hon'ble Delhi High Court in case of oswal Agro Mills Ltd. Hence, Ground No.2 is allowed. 11. As regards Ground No.3, relating to disallowance at 10% amounting to Rs. 1,97,725/- out of Vehicle Maintenance, the same was enhanced by the CIT(A) without assigning any reasons. The Ld. AR submits that the assessee had produced all the detailed documents maintained by the assessee before the Assessing Officer and nature and the business of the assessee justified the quantum of expenditure under these heads of accounts. The assessee also fulfils all the conditions laid down for allowability of expenditure of residual nature u/s 37(1) of the Act. Thus, the Ld. AR ....