INCOME TAX ACT, 1961

Section 254(1)

Appeal (Tribunal) - Additional ground - Assessee prayed for allowance of additional depreciation in subsequent years on the enhanced Written Down Value of Block of Assets at the prevailing rates -

Assessee engaged in software development services claimed additional depreciation under section 32(1)(iia) on additions made during asst. yr. 2016-17 to the block of assets like Computers and Software. AO disallowed the claim on the premise that computers were installed in office premises, thus would disentitle claim for additional depreciation within the meaniong of proviso (2B) to section 32(1)(iia). Assessee raised additional ground, wherein it was prayed that assessee might be allowed depreciation in subsequent years on the enhanced Written Down Value of Block of Assets at the prevailing rates. Held: Additional ground was directly connected with the main issue of disallowance and no new facts were to be investigated for adjudicating the same. Therefore, additional ground raised by assessee was admitted for adjudication.

Relied:National Thermal Power Co. Ltd. v. CIT n (1998) 229 ITR 383 (SC) : 1998 TaxPub(DT) 342 (SC) & Jute Corporation of India Ltd. v. CIT (1991) 187 ITR 688 (SC) : 1991 TaxPub(DT) 505 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2016-17

INCOME TAX ACT, 1961

Section 32(1)(iia)

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