AI Drafter 
TaxTMI 
TaxTMI 
2022 (7) TMI 1079
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....w Delhi, has erred in law as well as on facts and in circumstances of the case in upholding action of the Assessing Officer in disallowing of claim of depreciation of the appellant amounting to Rs. 15,46,939/- without appreciating the fact that the furniture used by the Appellant for a limited period due to expiry of lease of the premises. 2. That the Learned Commissioner of Income Tax (Appeals)-22, New Delhi, has erred in law as well as on facts and in circumstances of the case in confirming disallowance of depreciation claim amounting to Rs. 2,60,403/- of the appellant without appreciating the fact that the Appellant company engage in the business of tour and travel and vehicles have actually been used for carrying the travelers.....
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.... i) Period of construction of such alleged temporary structure is spread over more than 5 months (from 14.05.2012 to 31.10.2012). ii) Details and nature of some of the bills are as following :- Interior Design Consultancy Rs.18,000/- POP Rs.10,500/- Electrician Rs.2,00,000/- Furniture making charges Rs.2,00,000/- Toughened Glass Rs.1,52,063/- Painter Rs.76,071/- Wall Paper Rs.20,116/- Hardware Items etc. etc. Rs.92,765/- iii) Depreciation on these assets in the books has been provided at Rs.4,,44,907/- i.e. almost @25% whereas depreciation as per IT Act, on these assets has been claimed @100%. Though the assessee has not revealed the specific nature of these assets ev....
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....recation at 10% is allowable. In the instant case, the assessee might have incurred certain expenditure on wooden partition, on which deprecation @100% is allowable. However, no bifurcation of the same has been submitted by appellant and appellant only argument that since it is a rented premise therefore, depreciation @100% may be allowed. Under the head legal & Professional charge the appellant has made an payment of Rs.l,80,000/ - to Aprajita Davar for Designing the office. The payment is appearing in the ledger account of appellant under the head temporary structure - building. It means the payment is made for designing the office for which the alleged temporary structure is erected. When the appellant is paying such a hefty amount to in....
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....relating to interior design, electrification charges, furniture charges, wallpaper, toughened glass etc. These items are certainly revenue fixtures when used in the rented premises. How they are not temporary is beyond comprehension. Further, AO's hypothesis that these are "probably" addition in furniture and fixture is a guess-work, not sustainable in law. Ld. CIT(A)'s observation that the construction made does not appear to be temporary in nature is similar to the guesswork of the AO de hors the facts on record which show that these are temporary furnishing and fixtures in its premises. Such expenditure were duly held to be allowable by Hon'ble Allahabad High Court in the matter of Girdhari Dass & Sons vs. CIT 105 ITR 339 and ITAT, Mumab....
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....uthorities have failed to apply any mind. Moreover, even after submitting the RC Book of registration as taxi, ld. CIT (A) has made a bizarre remark that it was obtained with ulterior motives without any material having been brought on record. It is also noted that such depreciation rate was allowed in succeeding years i.e. AYs 2015-16, & 2017-18 u/s 143(3). Hence, we set aside the orders of the authorities below on this issue and decide the issue in favour of the assessee. 12. Apropos issue relating to disallowance of gross income on foreign exchange. On this issue, AO noted that assessee was found to have claimed certain loss on account of foreign exchange fluctuation on revaluation of advances received. He noted that loss was in respe....