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3. Briefly, the facts are, the assessee, a company is engaged in the business of manufacturing and marketing of steel furniture, security equipments, typewriters, electronic equipments, machine tools, fork lift trucks, locks, press tools etc. In the course of assessment proceedings, the AO noticed that the assessee has claimed depreciation of Rs.82,16,84,008/- and in the tax audit report it was stated by the assessee that such depreciation is claimed on the WDV of assets transferred from Godrej Appliances Ltd., pursuant to demerger of the said company. The AO called upon the assessee to explain why the claim of depreciation should not be disallowed. Though, the assessee justified its claim through an elaborate submission made before the AO, however, the AO taking note of the amendment made to Explanation 2B to section 43(6) of the Act from A Y 2004-05 disallowed assessee's claim of depreciation on assets acquired on demerger and, accordingly, reduced the claim of depreciation by an amount of Rs.3,09,61,631/- thereby allowing depreciation of Rs.79,07,22,377/-. Though, the assessee challenged the part disallowance of depreciation before the first appellate authority, he also confirmed the disallowance taking ITA No. 4040 & 4321/Mum/2015 Godrej & Boyce Mfg. Co. Ltd.