2006 (1) TMI 169

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....directed against the order of the learned CIT(A)II, dt. 24th June, 2003, for the block period 1888-89 to 1998-99. 2. We have heard both sides and perused the records. The assessment in this case has been passed under s. 158BC of the IT Act, on the basis of a search conducted under s. 132 of the IT Act. The assessee had claimed depreciation on the building used for the purpose of business. This ....

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....ock return, deliberately and suo motu allotted certain portion of cash found unexplained at the time of search, to each year, treating it as business income and then claimed depreciation for each year. This is wrong and goes against the principle of s. 132(4) of the IT Act. This aspect is ignored by the CIT(A)." 3. The learned Departmental Representative contended that the case of the assessee ....

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....y supported the order of the learned CIT(A). 5. We have heard the rival submissions and perused the records. At the outset, it is pertinent to note that col. 8 of the preamble to the assessment order describes the nature of the business of the assessee as "deals in dry fruits". The first para of the assessment order reads "in continuation of the search carried oat under s. 132 of the IT Act bot....

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....s of various High Court's and the Tribunal in his order meticulously while granting relief to the assessee on depreciation. Though, the assessee did not claim (depreciation) in any of the assessment years prior to search, he is entitled to claim the current depreciation for the block period. In the decision of Tribunal, Pune Bench, in the case of Balaji Construction vs. Asstt. CIT (2000) 66 TTJ (P....