2026 (4) TMI 257

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....ssessment should be vitiated for violation of CBDT Instruction No. 20/2015 on Limited Scrutiny. 2. On the facts and Circumstances of the case and in law, the ld. CITIA) has erred in disallowing the deduction amounting to Rs. 1,57,88,101/- under Section 54G of the Income Tax Act, 1961. 3. On the facts and Circumstances of the case and in law, the ld. CIT(A) has erred in disallowing the depreciation under Section 32 of the Income Tax Act, 1961. 4. On the facts and Circumstances of the case and in law, the Ld. CIT(A) has erred in disallowing Short term capital loss under Income Tax Act, 1961. 5. On the facts and Circumstances of the case and in law, the ld. CIT(A) has erred in disallowing the loss on sale of....

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....on sale of land and short term capital on sale of building as nil. The assessee company has claimed exemption in respect of the sale of land. When the assessee company was called for the details such as, copy of sale deed and original purchase deed of the land which is sold during the year, copy of the purchase deed of the land purchased during the year and working of capital gain, complete details of deduction claimed u/s. 54, the same was not given by the assessee. The assessee company has merely enclosed the copy of computation of income reflecting its claim of consolidating exemption u/s. 54G and 54F. After going through the assessee's details, the Assessing Officer made addition of Rs. 1,57,88,101/- thereby disallowing the long term ca....

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....mount of capital gain. As relates to ground no. 5, the ld. A.R. submitted that the disallowance of loss on sale of fixed assets debited to profit and loss account under Income Tax Act, 1961 was also not justified as the Assessing Officer only looked into debit side of the profit and loss account and has overlooked the income side of the profit and loss account of the assessee. In fact, the assessee had debited not only capital loss of Rs. 38,22,610/- but also has shown Rs. 4,59,30,768/- as capital profit on the income side of the profit and loss account. 6. The ld. D.R. relied upon the assessment order and the order of the CIT(A). 7. We have heard both the parties and perused all the relevant material available on record. As relates t....

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....ome which was before the Assessing Officer. The depreciation claimed by the assessee had been arrived at after conducting the cost of machinery sold and reducing the balance written down value further by short term capital gain of Rs. 45,90,080/- arose on the sale of the building being of same class of depreciable assets. The Assessing Officer has categorically mentioned that the assessee' claim depreciation without reducing the short term capital loss on sale of machinery from the opening written down value of the block. Thus, the excess depreciation disallowed by the Assessing Officer is justifiable and there is no need to interfere with the finding of the CIT(A). Ground nos. 3 is dismissed. As regards to ground no. 4 related to disallowa....