This Digest of case laws is prepared by KSA Legal and AIFTP from judgements reported in BCAJ, CTR, DTR, ITD, ITR, ITR (Trib), Chamber's Journal, SOT, Taxman, TTJ, BCAJ, ACAJ, www.itatonline.org and other journals
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S. 32 : Depreciation-Option to claim depreciation-Opting not to claim depreciation at rates specified in Appendix 1a-Eligible to claim depreciation according to Rule 5(1) and not Rule (5a)-The Assessing Officer is directed to allow W.D.V of depreciation. [R. 5(1), (1a), Appex. 1,IA]
Jindal Steel and Power Ltd. v. Add. CIT (2022) 97 ITR 516 (Delhi) (Trib)
S. 32: Depreciation-Block of asset-Depreciation is allowable irrespective whether asset is used or not.[S. 2(11)]
Dy. CIT v. Jagson International Ltd. (2022) 97 ITR 176 (Delhi) (Trib)
S. 32: Depreciation-Generation and distribution of power-Multiple units of Captive Power Plant-Adopting Straight Line Method-Accepted in previous and subsequent years-No change in facts-Directed to allow depreciation on Straight Line Method. [S. 32(1)(i)]
SEl Manufacturing Co. Ltd v. Dy.CIT (2022)97 ITR 79 (SN) (Chd)(Trib)
S. 32: Depreciation-Additional depreciation-Allowable only in the year of acquisition and installation-Capitalization of Foreign Exchange Loss incurred on acquisition of Plant and Machinery outside India-Additional cost capitalized not eligible for depreciation. [S. 32(1)(iia), 43A]
Daeseung Autoparts India Pvt. Ltd v. ACIT (2022) 97 ITR 76 (SN) (Chennai)(Trib)
S. 32 :Depreciation-Commission-Liquidated damages-Deduction from sale consideration-Matter remanded. [S. 37(1)
TE Connectivity India P. Ltd. v. Dy. CIT, LTU (2022) 99 ITR 379 (Bang) (Trib)
S. 32 : Depreciation-Unabsorbed depreciation–Carry forward and set off-Could be set off during any number of years in view of the provisions of S. 32(2) as amended by Finance Act, 2001.[S. 32(2)]
ACIT v. J. K. Fenner (India) Ltd. (2022) 220 TTJ 595 (Chennai)(Trib)
S.32: Depreciation-Ownership of property-Possession of property-Full payment was made-Registration was completed within six date of agreement-Ownership relates back to date of agreement.[Indian Registration Act, 1908, 23, 47]
Jet Freight Logistics Ltd. v. CIT (Appeals) (NFAC) (2022)99 ITR 37 (SN)(Mum) (Trib)
S. 32 : Depreciation-Suspension of business activities-generation and sale of electricity-Kept the asset for ready to use-Eligible for depreciation-Interest disallowance-Matter remanded for verification. [S. 32(1)(ii), 36(1)(iii)]
Sambhav Energy Ltd. v. ACIT (2022) 220 DTR 305/ 220 TTJ 1147/(2023) 199 ITD 750 (Jodhpur) (Trib)