Assessee is engaged in business of manufacture of footwear. Its factory is located on bank of river Ganges, in order to protect its factory building from floods, damp, erosion and/or any other forms of water damages, it incurred expenses for river embankment and its renovation . Tribunal held that since costs incurred on river embankment yielded benefit of enduring nature, entire expenditure was capitalized under block ‘Factory Building’ accordingly the depreciation is allowable . (AY. 2008 -09)
Bata India Ltd. v. DCIT (2020) 180 ITD 464 (Kol) (Trib.)
S.32 :Depreciation- Factory building- Depreciation was allowable on cost of river bank embankment and renovation thereof.