Addl. CIT vs. Indraprastha Gas Ltd.: Tribunal Upholds Depreciation Claim for AY 2016-17

Addl. CIT vs. Indraprastha Gas Ltd.: Depreciation Claim Upheld for AY 2016-17

Case Number: ITA 6305/DEL/2019

Assessment Year: 2016-17

Appellant: Addl. CIT, Special Range-4, New Delhi

Respondent: Indraprastha Gas Ltd., New Delhi

Background

This case involves the appellant’s challenge against the CIT(A) – 35, New Delhi’s order dated May 29, 2019, which pertained to the assessment year 2016-17. The primary issue was the deletion of an addition made concerning additional depreciation claimed under section 32(1)(iia) of the Income-tax Act, 1961.

Tribunal’s Decision

The tribunal noted that similar disputes had been settled in the assessee’s favor from the 2007-08 to 2015-16 assessment years and upheld by the Delhi High Court for AY 2007-08. Accepting the repetitive nature of the issue and the unchallenged earlier tribunal decisions, the ITAT dismissed the Revenue’s appeal, affirming the CIT(A)’s order.

Conclusion

The tribunal’s decision reinforces the continuity in judicial interpretation regarding depreciation claims, providing a significant precedent for similar cases and affirming the taxpayer’s right to claim additional depreciation as previously adjudicated. The dismissal of the appeal confirms the position that the factual matrix in the year under consideration aligns with those of the earlier years, establishing a consistency in judicial decisions related to tax depreciation claims.

Addl. CIT vs. Indraprastha Gas Ltd.: Tribunal Upholds Depreciation Claim for AY 2016-17