AWASTHI TRADERS Vs. COMMISSIONER OF INCOME-TAX-I, AGRA AND ANR.
LAWS(SC)-2016-8-106
SUPREME COURT OF INDIA
Decided on August 30,2016

Awasthi Traders Appellant
VERSUS
Commissioner Of Income-Tax-I, Agra And Anr. Respondents

JUDGEMENT

- (1.) Leave granted.
(2.) Admittedly, the proviso to Section 44AD of the Income Tax Act, 1961, (herein after referred to as 'the Act') is applicable to the appellant-assesse in view of the fact that its income for the assessment year in question, i.e. 2009-2010, is above Rs. 40,00,000/- (Rupees forty lakhs only). If that is so, the bar to the entitlement for depreciation under Section 44A(2) of the Act will not apply. Grant of depreciation under Section 32 of the Act would, therefore, become mandatory.
(3.) The above facts have been over looked by the High Court in holding that Section 44AD is applicable to the case of the appellant-assessee. We, therefore, set aside the order of the High Court as well as the order of the assessment and direct that necessary steps be taken in accordance with law so far as the assessment year 2009-2010 is concerned.;


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