ITAT allows claim of depreciation on the capitalised cost to GAIL India
ITAT allows claim of depreciation on the capitalised cost to GAIL India – In an alleviation to Gail India, Personal Tax Appellate Tribunal (ITAT), Delhi Bench permitted the case of deterioration on the promoted cost as the assessee, M/s GAIL (India) Ltd. asserted devaluation on Jamnagar-Loni-Pipeline and Gandhar LPG Plant. During the year viable the assessee effectively laid and appointed a pipeline from Jamnagar, Gujarat to Loni (the Jamnagar-Loni Pipeline) and the LPG Gas Processing Plant, Gandhar. The AO was of the sentiment that crafted by Jamnagar Loni Pipeline was finished after March 31, 2001 and similar was not prepared and not put to use prior to March 31, 2001. The AO appropriately denied the case of devaluation collecting to Rs. 99.37 crores. The reasons given by the AO for forbidding the case of devaluation in regard of LPG Gas Processing Plant Gandhar is that assessee has not set up that the LPG Plant was prepared for use on March 31, 2001 and therefore refused deterioration amassing to Rs. 54.22 crores. At the point when the issue was unsettled before the CIT(A) it was held that to guarantee deterioration the resource should be put to use with the end goal of the business. As respects, Jamnagar Loni Pipeline, the CIT(A) saw that little work identifying with the pipeline was all the while forthcoming to be done and in this way, the said pipeline was not put to use by the litigant organization in the year viable. In so far as the LPG Gas Processing Plant Gandhar is concerned, the CIT(A) saw that creation began uniquely in April, 2001 and certain works were yet to be finished and likewise maintained the activity of the AO in forbidding the case of deterioration. The assessee on the side of the case depended upon different legal choices and finished up by saying that the assessee has effectively charged the Jamnagar-Loni Pipeline and the LPG Gas Processing Plant, Gandhar and the devaluation should be permitted. The Coram comprises of Judicial Member, Madhumita Roy and Accountant Member, N.K. Billaiya, while permitting the allure held that the assessee has effectively dispatched the Jamnagar Loni Pipeline and the LPG Gas Processing Plant Gandhar and is a lot of qualified for the guarantee of devaluation on the promoted cost subsequently. Accordingly, the ITAT coordinated the AO to permit the devaluation of Jamnagar Loni Pipeline and Gandhar Plant.
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