Depreciation Claim Disallowed Due to Error: ITAT Remands Matter to AO

The ITAT has remanded a case back to the assessing officer (AO) regarding the disallowance of depreciation claims due to an error. The case involved a taxpayer who had claimed depreciation on certain assets, but the AO had disallowed the claim citing an error. The ITAT directed the AO to re-examine the issue and make a fresh determination, taking into account the taxpayer's explanation and the supporting documentation. The tribunal emphasized that taxpayers should be given a fair opportunity to rectify any mistakes in their claims and that administrative errors should not lead to unjust denial of legitimate tax benefits. The ruling is expected to provide clearer guidance on how depreciation claims should be handled in cases involving inadvertent errors.