depreciation u/s32 not claimed in the return

HI FRIENDS, OUR CONSULTANT FILED ITR 6 ONLINE FOR AY 08-09 ON 30 / 09 / 2008. WHILE FILLING THE RETURN ONLINE HE DID NOT CLAIM DEDUCTION U/S 32 FOR DEPRECIATION. WE DID NOT COME TO KNOW THE FACT TILL DATE. NOW AFTER WE SAW THE  ASSESSMENT ORDER AND DEMAND NOTICE WE CAME TO KNOW THAT INCOME TAXABLE AS PER ITR6 WAS WRONGLY SHOWN / FILED WITHOUT CLAIMING DEPRECIATION. ASSESSING OFFICER DID NOT CONSIDER REQUEST U/S154 AS REQUEST WAS MADE AFTER ASSESSMENT ORDER WAS PASSED. THE AO IS ASKING US TO GO ON APPEAL. AS PER SECTION 32 EXPLANATION 5 EVEN IF ASSESSEE DO NOT CLAIM DEDUCTION  THE SAME SHALL BE CONSIDERED BY THE ASSESSING AUTHORITY.WE SHOWED THE OFFICER FORM 3CD IN WHICH CALCULATION OF DEPRECIATION AS PER IT ACT IS SHOWN, STILL THE DEDUCTION WAS DENIED AS ORDER WAS PASSED. IS ASSESSING OFFICER WRONG IN PASSING THE ORDER WITHOUT CONSIDERING THE DEDUCTION U/S32? NOW WHAT IS THE REMEDY APART FROM APPEAL?

 

VITTHAL KORATKAR  

Replies (2)

Consider Revision u/s 264 ( for this You will have to waive your Right to Appeal and order passed u/s 264 cannot be prejudicial to Assessee)

Regards

Ankit

 

Dear Vitthal Koratkar,

As you rightly said Depreciation is the only deduction which is compulsory in any case where assessee omits or forgets to claim it. In your case since its a mistake apparent from records of not claiming the depreciation you can move again an application u/s 154 asking AO to rectify his order (as law permits an AO to rectify his order u/s 154 even application is made after passing of assessment order). Even if he denies to do so you can appeal (if time permits) or as rightly pointed out by my friend Ankit in his reply go for a revision u/s 264.  

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