Asset once becomes part of block of assets is eligible for dep. even if it wasn’t used in subsequent years: ITAT

  • Blog|News|Income Tax|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 4 December, 2021

Recent Posts

Blog, News, GST & Customs

Bail Granted Due to Investigation Lapses in Issuing Fake Invoices Under GST | HC

Blog, News, Insolvency and Bankruptcy Code

Delisting of Equity Shares Under Approved Resolution Plan Would Be Governed by IBC; Overrides SEBI Delisting Norms | HC

Latest from Taxmann

Section 36(1)(iii) of the Income-tax Act 1961 - Interest on borrowed capital (Year in which deductible)

Case Details: Pawan Hans Helicopters Ltd. v. DCIT - [2021] 132 taxmann.com 271 (Delhi - Trib.)

Judiciary and Counsel Details

    • Amit Shukla, Judicial Member and Dr. B.R.R Kumar, Accountant Member
    • Ved Jain, Adv. for the Appellant. 
    • Ms. Pramita M. Biswas, CIT DR for the Respondent.

Facts of the Case

Assessee-Pawan Hans Limited had claimed the depreciation on Westland Helicopters which were the part of block of assets. These assets had been acquired in 1986-87, however, the same were not used during the current assessment year.

Assessing Officer (AO) held that the depreciation claimed by the assessee was not allowable since the asset was not used in the current year. On appeal, the CIT(A) also confirmed the disallowance. Aggrieved-assessee filed the instant appeal before the Delhi Tribunal.

ITAT Held

The Delhi Tribunal held that the helicopters were acquired in 1986-87 and the assessee was claiming the depreciation since then. The AO had allowed the depreciation on helicopters in the earlier assessment years. This fact was also not disputed by the AO as well as CIT(A). Further, the assessee was following the concept of block of assets which were also not in qualm by the revenue.

Once an asset is part of the block of assets and depreciation is granted on that block, it cannot be denied in its subsequent year on the ground that one of the assets is not used by the assessee in some of the years. The concept “user” of assets has to apply upon block as a whole instead of an individual asset. Thus, assessee cannot be denied the benefit of depreciation claimed under section 32 with regard to the Westland Helicopters.

Case Review

List of Cases Referred to

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied