TaxTMI 
TaxTMI 
2025 (3) TMI 217
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....ercise of his revisionary powers under Section 263 of the Income-tax Act, 1961 [hereinafter referred to as "the Act"], for the Assessment Year 2018-19. 2. The assessee has raised following grounds of appeal:- "1. That on the facts and circumstances of the case and in law, the order dated 13.03.2024 passed by the Principal Commissioner of Income Tax, Ahmedabad-3 [PCIT'] under section 263 of the Income Tax Act, 1961 ('the Act') is without jurisdiction, illegal, bad in law, and liable to be quashed. 1.1. That the PCIT erred on facts and in law in setting aside the assessment order dated 08.11.2021 passed under section 143(3) r.w.s. 144C and 144B of the Act holding the same to be erroneous and prejudicial to the....
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....isionary jurisdiction under section 263 of the Act 2. That on the facts and circumstances of the case and in law, the PCIT erred in holding that the appellant has claimed and is allowed excessive depreciation to the extent of Rs. 23,40,03,327 in the original assessment. 2.1. That the PCIT erred in law in holding that the appellant was required to deduct the remaining 10% [50% of 20%] of the additional depreciation relating to assets acquired and put to use for less than 180 days in the preceding year, from the opening written down value (WDV) of the block for the year under consideration, and general depreciation @15% be computed on reduced WDV. 2.2. That the PCIT erred on facts and in law in not appreciating that....
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....iled by the assessee, book profit u/s. 115JB of the Act was at Rs. 207,85,71,276/-. The case of assessee was selected for Complete Scrutiny under CASS and scrutiny assessment u/s 143(3) r.w.s. 144C r.w.s 144B of Act was completed on 08.11.2021 determining income at Rs. 50,43,61,446/- under normal provisions of the Act and Book Profit of Rs. 207,85,71,276/- u/s 115JB of the Act. 4. The issue : The Ld. PCIT has sought to revise the assessment order dated 08.11.2021 passed by the assessing officer under section 143(3) r.w.s 144C(3) and 144B of the Act on the ground that the same was erroneous in so far as prejudicial to the interests of the Revenue, inasmuch as the Assessing Officer has failed to examine the claim of depreciation made by th....
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....ditional depreciation of Rs. 156,00,22,181/- was carried forward to be claimed in assessment year 2018-19 as per the third proviso to section 32(1 )(ii) of the Act. A working of the total depreciation charged during the year under consideration is tabulated as under:- S.No. Block of assets Plant and Machinery Rate (%) 15 30 40 (i) (ii) (iii) 3a Written down value on the first day of previous year 14,19,66,02,772 - 3b Written down value on the first day of previous year, of those block of assets which were eligible for depreciation @ 50%, 60% or 80% as per the old Table - - 23,10,31,519 4 Additions for a period of 180 days or more in the previous year 1,3....
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....h transfer of asset/ assets - - - 20 Capital gains/ loss under section 50(5+ 8-3a-3b -4 -7-19) - - - 21 Written down value on the last day of previous year (6+ 9-15) 16,89,99,13,280 - 18,13,29,768 7.2 For the year under consideration, the assessee claimed aggregate depreciation of Rs. 529,41,01,183/- which included additional depreciation of Rs. 156,00,22,181 pertaining to assets put to use for less than 180 days in the preceding assessment year 2017-18. The aforesaid depreciation, it is submitted, was computed in accordance with income tax return utility prescribed by CBDT. The Ld. PCIT, in the impugned order, however held that the assessee should, at first, have reduced the addit....
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....tted, the utility as conceived by the Income-tax Department, calculates the amount of normal and additional depreciation allowable on the block of asset. 7.3 For the sake of ready reference, the Schedule of DPM and the sequence of computation is mentioned below:- 1. Block of assets 2. Rate % 3. Written down value on the first day of previous year 4. Additions for a period of 180 days or more in the previous year 5. Consideration or other realization during the previous year out of 3 or 4 6. Amount on which depreciation at full rate to be allowed 3+4-5 (enter 0, if result is negative 7. Addition for a period of less than 180 days in the previous year 8. Consideration ....