CPC to allow claim of dep. indicated in P&L of ITR even if Schedule DEP isn’t filled up: ITAT

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  • Last Updated on 2 November, 2022

depreciation in ITR

Case Details: Indauto Filters Vs the Assistant Director of Income Tax - [2022] 144 taxmann.com 3 (Bangalore-Trib.)

Judiciary and Counsel Details

    • N. V. Vasudevan, Vice-President & Ms. Padmavathy S, Accountant Member
    • K.G. Acharya, CA for the Appellant.
    • K.R. Narayana, Addl. CIT (DR) for the Respondent.

Facts of the Case

The assessee was a partnership firm. In the return of income, it inadvertently failed to feed the details of depreciation in Schedule- DEP and Part BP- Computation of income from Business or Profession but submitted the same correctly in “Part A- P&L”. Assessee received an intimation under section 143(1) wherein claim for depreciation was disallowed and the amount was added as the income from business or profession.

The aggrieved Assessee filed an appeal to CIT (A) which was dismissed. The matter reached the Bangalore Tribunal.


The Tribunal has emphasized Explanation 5 to section 32 wherein it was stated that the claim for depreciation is allowed irrespective of the fact that the assessee has claimed the deduction for depreciation in the computation of total income.

The fact that the depreciation was correctly disclosed in “Part A- P&L” and the Tax Audit Reports, also supports the contention of the assessee that the depreciation was inadvertently omitted while filing ITR.

Further, the Assessing Officer is also duty-bound to grant the depreciation allowance if the conditions mentioned in Section 32 have been complied with irrespective of the fact that the same is claimed by the assessee or not.

Thus, in the instant case, the assessee should be allowed the claim of depreciation under section 32.

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