TAG Chemicals (India) Pvt. Ltd. vs. ACIT, Circle - 1(1) Trivandrum
Parties Involved
Facts Summary
TAG Chemicals (India) Pvt. Ltd. filed an appeal against the order of the National Faceless Appeal Centre, Delhi for Assessment Year 2016-17. The assessee claimed depreciation on lease premium paid for using the land taken on lease, which was disallowed by the Assessing Officer and confirmed by the Commissioner of Income Tax (Appeals). The assessee argued that the lease premium expenditure should be treated as an intangible asset eligible for depreciation under section 32 of the Income Tax Act, 1961. The Tribunal referred to a similar case decided by the Mumbai Tribunal in favor of the assessee and allowed the appeal.…
Decision in favour of
Assessee
Legal Issues
- 1. Whether the disallowance of depreciation on lease premium is justified?
Judgment Outcome
Decided in favour of Assessee.
Precedents Relied Upon
2 precedents cited in this judgement.
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