Additional amount paid for custom duty can be capitalized to claim depreciation even the decision is pending
Last updated: 30 April 2012
Court :
INCOME TAX APPELLATE TRIBUNAL
Brief :
On the facts and circumstances of the case, the ld. CIT(A) has erred in overlooking the fact that though similar issue was raised during A.Y. 2005-06 and 2006-07 and decided in favour of the assessee by the Hon’ble High Court of Delhi, but the Customs Authorities have also imposed a heavy penalty on the forgery committed by clearing agents on behalf of the assessee. The ld. CIT(A) failed to appreciate that the assessee had paid the additional customs duty under protest and that the customs department had not taken a final decision in the matter and hence it would be premature to add this amount to the cost of plant and machinery for the purpose of depreciation u/s 32 of the Income-tax Act, 1961.
Citation :
Assistant Commissioner of Income-tax, Circle 13(1), New Delhi.(Appellant) Vs.Orient Ceramics & Industries Ltd., IRIS House,16, Business Centre, Nangal Raya,New Delhi - 46.PAN: AAACO0305P (Respondent)
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CS Bijoy
Published in Income Tax
Views : 2643
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