2024 (8) TMI 1174

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....assessee raised 2 grounds of appeal amongst which, the only issue emanates for our consideration is whether the ld. CIT(A) is justified in confirming the order of the Assessing Officer in denying depreciation in the facts and circumstances of the case. 3. The assessee is a company engaged in the business of garments and other accessories. The assessee conducts its business under the name and style of M/s. Hi-Style India Private Limited. Originally, the assessee filed its return of income declaring a total income of Rs..91,88,120/-, wherein, the Assessing Officer completed the assessment under scrutiny determining the income of the assessee at Rs..93,07,680/- vide order dated 05.12.2016 passed under section 143(3) of the Income Tax Act, 1....

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....d floors, partitions, etc. are revenue expenditure. Further, he drew our attention to the decision of the Hon'ble Supreme Court in the case of CIT v. Madras Auto Services P. Ltd. 233 ITR 468 (SC) and argued that the amount spent on leased premises is revenue expenditure. Further, he referred to another decision in the case of CIT v. Amrutanjan Finance Ltd. [2011] 15 taxmann.com 392 (Mad.), wherein, the Hon'ble Madras High Court held that the assessee therein is entitled to 100% depreciation on false-ceiling and wooden partition inclusive of furniture, electrical wiring and interior decoration and relevant portions in the said order are reproduced herein below: The Revenue is on appeal against the order of the Tribunal relating to a....

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....ceiling and office renovation had not resulted in a capital expenditure. Applying the decision reported in [1998] 233 ITR 468 (Commissioner of Income Tax Vs. Madras Auto Service P. Ltd.) and [2007] 292 ITR 266 (Mad) (Commissioner of Income Tax Vs. Ayesha Hospitals P. Ltd.), this Court held that the assessee was entitled to 100% depreciation on the false ceiling and wooden partition inclusive of furniture, electrical wiring and interior decoration. It is seen from the order of the Tribunal that an identical claim in respect of the same assessee for the block period ending 3.10.1996 was allowed and the order of the Tribunal had become final. The Tribunal pointed out that temporary erection would qualify for 100% depreciation. As far as the pr....