Deduction towards depreciation and financial cost under the Income Tax Act

This Income Tax Appellate Tribunal case concerns Coromandel Concrete Products Pvt Ltd.'s appeal regarding deductions for depreciation and financial costs for the Assessment Year 2012-13. The assessee argued that these deductions were not properly considered during the initial processing of their tax return. The Tribunal directed the Assessing Officer to verify the claim for depreciation and also requested verification of the financial cost deduction.

IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD BENCH “B”, HYDERABAD
(Through physical hearing)

BEFORE SHRI A. MOHAN ALANKAMONY,
ACCOUNTANT MEMBER
AND
SHRI S.S. GODARA, JUDICIAL MEMBER

ITA No. 323/Hyd/2019
AY: 2012-13

Coromandel Concrete
Products Pvt Ltd.,
Visakhapatnam.
PAN: AABCC 3446 Q
(Appellant) 

VS. 

Income Tax Officer,
Ward-1(4),
Hyderabad.
(Respondent)

Assessee by: Shri D. Ranga Rao
Revenue by: Shri Rohit Mujumdar, DR

Date of hearing: 10/03/2021
Date of pronouncement: 14/06/2021

ORDER

PER A. MOHAN ALANKAMONY, AM.:

This appeal is filed by the assessee against the order of the Ld. CIT (A)-1, Hyderabad in appeal No. 0152/2017-18/ITO-1(4)/CIT(A)-

1/Hyd/2018-19, dated 17/12/2018 passed U/s. 154 r.w.s 250(6) of the Act for the AY: 2012-13.

2. The assessee has raised two grounds in its appeal and they are extracted herein below for reference:-

“1. Financial cost have not been considered, although in the main grounds of appeal the matter has been agitated, the same has been mentioned in the grounds of appeal and 154 rectification and other submission.

2. Any other grounds that may be filed time to time till disposal of appeal.”

3. The brief facts of the case are that the assessee is a Private Limited Company filed its return of income and thereafter the same was processed by the Centralised Processing Centre, Bengaluru and the assessment order was passed on 25/4/2013 wherein the total tax liability of the assessee was assessed at Rs. 12,42,690/-. Aggrieved by that order the assessee filed an appeal before the CIT (A) wherein it was agitated that deduction towards depreciation and financial cost was not granted. It was explained before the Ld. CIT (A) that while uploading the data the depreciation and financial cost was not properly uploaded due to which this mistake had occurred while processing the return by the CPC, Bangalore.

4. The Ld AR submitted before us that the Ld CIT (A) judiciously directed the Assessing Officer to verify the claim of the assessee with respect to the deduction towards depreciation however by oversight did not direct the Ld. AO to verify the claim of deduction towards financial cost. It was therefore pleaded that the Ld. AO may be directed to verify the claim of the assessee with regard to the expenditure incurred towards financial cost and grant deduction in accordance with law.

To know more in details find the attachment file