Section 32 : Depreciation on Leasehold land Allowed

Assessee's claim for depreciation in respect of leasehold land acquired from State Governments which could be used over a certain period of time, was to be allowed

[2015] 56 taxmann.com 396 (Hyderabad - Trib.)

IN THE ITAT HYDERABAD BENCH 'B'

NMDC Ltd.

v.

Joint Commissioner of Income-tax, Range-16, Hyderabad

Section 32 of the Income-tax Act, 1961 - Depreciation - Allowance/rate of (Leasehold land) - Assessment year 2008-09 - During relevant year assessee claimed depreciation on intangible assets - Assessee's case was that intangible assets were mainly lease hold land acquried from various State Governments which could be used over a certain period - Revenue authorities held that since land did not form an intangible asset, depreciation claimed by assessee for such asset was not admissible - Whether assessee's claim for depreciation was to be allowed - Held, yes [Para 22.1] [In favour of assessee]