The assessee claimed a certain amount as depreciation. The AO allowed the claim\u00a0\u00a0 in part and disallowed the balance depreciation. On appeal, the Tribunal held that the assessee was not entitled to depreciation at all. Therefore, the entire claim was directed to be disallowed.<\/p>\n
\u00a0<\/p>\n
Can the Tribunal take back a benefit conferred by the AO or enhance the assessment?<\/p>\n
\u00a0<\/p>\n
The assessee relied on the Supreme Court\u2019s judgment in the case of Hukumchand Mills Ltd. v. CIT (1967) 63 ITR 232 (SC) <\/em><\/strong>to argue that the Tribunal\u00a0 does\u00a0 not have the power to enhance an assessment. The department supported the order of the Tribunal.<\/p>\n \u00a0<\/p>\n The Supreme Court accepted the assessee\u2019s contention and held that the Tribunal has no power to take back a benefit conferred by the AO,\u00a0 i.e., the Tribunal\u00a0 does not have the power of enhancement. (AY. 1991-92) (CA\u00a0 No.\u00a0 955\u00a0 of\u00a0 2009 dt. 12-2-2009)<\/p>\n Editorial : <\/em><\/strong>Similar view has been taken in the case of State of Kerala v. Vijaya Stores (1979) 116 ITR 15 (SC). <\/em><\/strong>However, the Karnataka High Court in the case of Fidelity Business Services India P. Ltd. v. ACIT (2018) 257 Taxman 266 (Karn) (HC) <\/em><\/strong>has taken a contrary view.<\/p>\n \u201cIf we could change ourselves, the tendencies in\u00a0 the world would also change. As a man changes his own nature, so does the attitude of the world change towards him.\u201d<\/em><\/p>\n – Mahatma Gandhi<\/p>\n","protected":false},"excerpt":{"rendered":" S. 254(1): Appellate Tribunal – Power of enhancement – Tribunal has no power of enhancement .<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-13459","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3v5","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13459","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=13459"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13459\/revisions"}],"predecessor-version":[{"id":13460,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13459\/revisions\/13460"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=13459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=13459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=13459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Held<\/h3>\n