Order u/s 154 (of Income Tax Act, 1961) quashed as issue of deprecation required examination

1. Oriental Bank of comerce was a public sector undertaking bank.

2. It disclosed total income of Rs. 174,45,44,140.

3. Assessment was completed u/s 143(3) (of Income Tax Act, 1961) at a total income of Rs. 664,17,56,342 after making several disallowances.

4. Being aggrieved by the disallowances, appellant preferred an appeal before CIT(A).

5. While the matter stood thus, the AO sought to rectify the assessment order on the issues of wrong claim of depreciation, and claim of business loss.

6. AO u/s 154 (of Income Tax Act, 1961) withdrew excess depreciation of Rs. 12,14,26,196.

7. CIT(A) confirmed the AO’s order.

On appeal, the ITAT held as under:

8. We hold that the issue whether the deprecation @100% or 15% on interiors which are purely wooden structures is a debatable point as it requires examination of details and cannot be rectified by exercising the power vested under Section 154 (of Income Tax Act, 1961).

9. Therefore, we quash the order of the Assessing Officer dated 30th November, 2007 passed under section 154 (of Income Tax Act, 1961) and allow this ground of appeal.

Case Reference - Oriental Bank of Commerce Vs. ACIT

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: 'E': NEW DELHI

BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND

SHRI KULDIP SINGH, JUDICIAL MEMBER

ITA No. 21/Del/2011

(Assessment Year: 2005-06)