Anand and Anand v. ACIT

Ascertainment of class of buildings owned/taken on lease by assessee for purpose of granting depreciation thereon and determining WDV thereof

 

A meaning given to structure or work done by the assessee in or in relation to a leased building under Explanation 1 to section 32(1) of the Income-tax Act, 1961 shall be given equal effect while determining its class of assets and WDV thereof; the assessee cannot be allowed to give one treatment to the work or structure done in or in relation to the leased building by treating the same as a building owned by the assessee while claiming depreciation in respect thereof and to give a different treatment while determining nature of ‘block of assets’ and WDV thereof by treating the building actually owned by the assessee and the building deemed to be owned by the assessee as a separate and distinct block of assets when there is no different as to their class. 

 

ITAT, DELHI BENCH ‘A’, NEW DELHI

Anand and Anand

v.ACIT

ITA No. 2675/Del/2007