| Case ID |
eb29cf8a-57e3-421b-afc1-da6867265efc |
| Body |
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| Case Number |
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| Decision Date |
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| Hearing Date |
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| Decision |
The Rajasthan High Court upheld the Tribunal's decision allowing the depreciation deduction under Section 32 of the Income-tax Act, 1961. The court found that the Income Tax Officer (ITO) had computed net profit without considering depreciation and interest, thus the claim for depreciation was legitimate. The Tribunal's ruling was affirmed, stating that since depreciation was not included in the net profit calculation, denying the deduction was not warranted. The appeal by the Commissioner was dismissed. |
| Summary |
This case revolves around the interpretation of Section 32 of the Income-tax Act, 1961, specifically regarding the allowance of depreciation on business assets. The Rajasthan High Court examined the assessment order made by the ITO, who applied a net profit rate of 8% without accounting for depreciation and interest payments. The Tribunal ruled in favor of the respondent, Sriram & Co., stating that the ITO’s calculation method did not consider the legitimate deduction for depreciation. The High Court affirmed the Tribunal's decision, emphasizing that the ITO’s assessment clearly indicated that depreciation was excluded from the net profit figure, thus the claim for depreciation was valid. This judgment reinforces the importance of allowing legitimate deductions under tax laws and clarifies the procedural aspects of income tax assessments, particularly for businesses claiming depreciation. Keywords like 'Income Tax Act', 'depreciation', and 'Rajasthan High Court' are essential for optimizing search relevance. |
| Court |
Rajasthan High Court
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| Entities Involved |
Not available
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| Judges |
Rajesh Balia,
H.R. Panwar
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| Lawyers |
L.M. Lodha,
Sandeep Bhandawat
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| Petitioners |
Commissioner of Income Tax
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| Respondents |
Sriram & Co.
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| Citations |
2001 SLD 2823,
(2001) 250 ITR 169
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| Other Citations |
Not available
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| Laws Involved |
Income-tax Act, 1961
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| Sections |
32
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