2024 (3) TMI 94

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.... is accordingly proceeded ex-parte. 2. The Revenue pleads the following substantive grounds in the instant appeal : 1. "On the facts and in the circumstances of the law, the CIT(A)-2, Kolhapur has erred in allowing additional depreciation for AY 2011-12 considering the fact that assessee has forgone such claim which was available to him for AY(s) 2006-07 to 2009-10; when, such claim is not allowed in the light of an Explanation 5 inserted by the Finance (No. 2) Act, w.e.f 01/04/2002. 2. On the facts and in the circumstances of the law, the CIT(A)-2, Kolhapur, erred in not appreciating the legal position, that additional depreciation u/s. 32(1)(iia) of the Act is allowed for the "only" year during which new machinery or ....

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..... This followed the Revenue Audit Party ["RAP"]'s objections that the Assessing Officer's regular assessment had resulted in under-assessment of income qua the foregoing depreciation/additional depreciation issue(s). This made the Assessing Officer to initiate sec.154 rectification vide notice to the assessee dated 09.06.2015. The Revenue could hardly dispute before us that the Assessing Officer's rectification order herein dated 07.10.2015 went for a detailed discussion for the purpose of re-computing the assessee's depreciation/additional depreciation claim(s) resulting in consequential disallowances; which in turn, stand reversed in the CIT(A)'s lower appellate findings. This leaves Revenue aggrieved. 5. All these foregoing cli....

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....le for additional depreciation at a higher rate. The respective opening WDVs were Rs 5,99,68,428 (normal depreciation) and Rs 2,29,00,408 (additional depreciation). When queried about the basis of such bifurcation, the appellant stated that he has adopted the opening WDV of the P&M eligible for additional depreciation at Rs 2,29,00,408 by calculating the WDV of the P&M acquired after 01/04/2005 (after claiming normal depreciation on them). The same is as under:- SR.N 0. DESCRIPTION OF ASSET RATE OF DEP OPENING TOTAL WDV ADDITIONS BEFORE DEPRECIATION CLAIMED CLOSING AFTER AMOUNT WDV 180 days 180 Days Normal Depreciation 1 2006-07 Block Plant and 15% ....