COMMISSIONER OF INCOME TAX Vs. WIPRO FINANCE LTD

JUDGEMENT

(1.) This appeal is filed by the revenue being aggrieved by the order passed in ITA. No. 1059/ Bang/2003 dated 23.12.2005. The substantial question of law raised for consideration in this appeal, is as under:

(2.) We have heard the learned Counsel appearing for the appellants and the learned Counsel appearing for the respondent.

(3.) The learned Counsel appearing for the revenue submitted that there was a search and assessment was made for the block period on the basis of the material found during the search and after passing of the original order by the assessing officer, the same was challenged in appeal and thereafter, before the Tribunal and ultimately before this Court. The matter now stands pending before the Commissioner of Income Tax (Appeals) in view of the order passed by the Income Tax Appellate Tribunal dated 24.6.2009. Wherefore, the assessing officer had rightly rejected the claim made by the assessee for depreciation of the plant and machinery, which had been leased by the assessee. The appellate authority has ordered in appeal ITA. 10/CC/CIT(A) 1/2000-2001 that since the question regarding the block assessment is pending consideration, the claim for depreciation cannot be allowed at this stage. Being aggrieved by the order of the appellate authority the revenue had preferred appeal before the Income Tax Appellate Tribunal. The assessee also had preferred appeal before the Tribunal. The Tribunal at Bangalore A Bench by order dated 23.12.2005 held that the claim now made is for the year 1997-1998, which is beyond the block period. Wherefore, depreciation is claimed in the regular assessment and since the depreciation had been allowed in the earlier assessment year disallowance of the depreciation was erroneous Accordingly, dismissed the appeal filed by the revenue and allowed the appeal filed by the assessee and being aggrieved by the same this appeal is filed by the revenue.